UK Tax FAQs

For Self-Employed Workers

As a self-employed worker in the UK you are responsible for your own tax and National Insurance Contributions.

You will pay 22% on earnings above £2231 and 40% on any earnings over £34,600.

You are also required by law to file an annual self-assessment tax return and declare all your earnings. Failure to do so can lead to penalties and fines.

Taxback.com can minimise your tax obligations and maximise your legal tax refund.

Our self-employed customers get an average tax refund of £1453 from the UK.

Try our FREE online UK tax refund calculator to how much tax rebate you could get back.

FREQUENTLY ASKED QUESTIONS

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What does being self-employed mean?

If you're self-employed in the UK you are responsible for your own tax and National Insurance contributions. This means:

You must register as self-employed with HMRC if you haven't already done so
You must file a self-assessment tax return each year and declare all your income to your Inland Revenue office. The tax office will normally send you a self-assessment tax return each year in order to do this. You must tell them about all your income in any tax year – even if you are not sent a tax return for that year
You must pay all necessary tax in any tax year
You must pay Class 2 and Class 4 National Insurance contributions

Being self-employed also affects the benefits you can claim, your rights to things such as maternity leave or redundancy payments, and your liability to the public for the work you do for them.

What is self-employment registration?

To work as self-employed in the UK you have to register as self-employed with HMRC. If you do not register within the first three months of self-employment you may have to pay a penalty of £100. If you do not register and are not paying tax, you are breaking the law and could face further penalties.

Taxback.com can help you register as self-employed and ensure you have the right information to know what tax you need to pay and when. We charge £20 for this service. Apply online for your self-employment registration today.

How can I open a business bank account?

If you are self-employed or running a business in the UK you may need to open a business bank account.

Banks in the UK have very strict criteria on opening business bank accounts and it can be very difficult, especially if you're new to the UK.

Taxback.com has a partnership with Barclays Bank and can organise a business bank account for you. Apply online to start setting up your UK business bank account today.

How can I establish a limited company in the UK?

If you're running a business in the UK you may need to set up a limited (Ltd) company. The main benefit of trading through an Ltd company is that the company's shareholders and director(s) are protected from loss if the business fails. As a sole-trader or other non-limited business, personal assets can be at risk if the businesses should fail.

Taxback.com can establish an Ltd company in the UK for you. With our service you'll get a free name check, free business bank account and your certificate of incorporation, memorandum and articles delivered by email or post. We can set up a limited company for you in 24 hours for £60 or in two weeks for £49.

Apply to establish your Ltd Company today.

I'm a subcontractor – how can I get my CIS Registration?

The Construction Industry Scheme (CIS) sets out the rules for how payments to subcontractors for construction work must be handled by contractors and other businesses. To work in construction all subcontractors need to be CIS registered and have a UTR number, which you'll need to provide to all your contractors.

Taxback.com can organise your CIS registration and UTR number. We charge £35 for this service and it will take about six weeks if you're not already registered as self-employed in the UK. If you are registered as self-employed it will only take a few days.

Apply online for your CIS registration.

What's a UTR number?

The UTR (Unique Taxpayer Reference) is the reference number under which a person is registered as self-employed in the UK and you cannot work as a self-employed person without one. You'll get a UTR when you get your CIS registration. If you're self-employed we'll need your UTR to claim your UK tax rebate.

What is the CSCS test and card?

Anyone who works on a construction site or who needs access to a construction site in the UK, such as subcontractors, needs to have a health and safety pass known as a CSCS Card.

The CSCS (Construction Skills Certification Scheme) is designed to prove that the holder of the card is both competent and safe to work in the construction industry.

The CSCS Card means your skills and qualifications will be recognised by UK employers and it will give you a better chance at employment in construction in the UK.

How can I sit the CSCS test and get my CSCS card?

Taxback.com can organise for you to sit the CSCS test and obtain your CSCS card for you.

We have a CSCS training and test centre which runs health and safety tests five times a day, with Saturday appointments available. The 45-minute test covers questions relating to your day-to-day job on a construction site as well as specific health and safety procedures. You will receive your registration certificate the same day you pass the test.

We can also obtain your CSCS card for you. To get your card, we'll need your National Insurance Number and a passport-sized photograph of you.

We charge £45 for our CSCS test service and £80 for a CSCS test and card pack.

Passing the CSCS health and safety test will give you a short-term one-year certificate that will allow you to go on a construction site and work. If you intend on working in construction long-term in the UK, you will need to get a CSCS Card.

Book your CSCS test and/or card online today.

When can I get my tax back?

The UK tax year is from April 6th until April 5th of the following year. The 2008 tax year started on April 6th 2008. If you are self-employed in the UK, you will be sent a self-assessment tax return in April and you must file it by January 31st of the following year.

2008 UK tax returns: If you work in the UK as self-employed during 2008 you must file your annual tax return by January 31st 2009 or you will have to pay penalties.

If you're only working temporarily in the UK and leave before the end of the year you still need to file your tax return and we can do this for you as soon as you leave the country. Download our UK self-employed TaxPack and make sure you keep all your documents so we can get your tax back as fast as possible when the time comes.

2002 - 2007 UK tax returns: If you've worked as self-employed in the UK between 2002 and 2007 and have not filed your tax returns it's not too late. You will owe penalties to the tax office for late filing but you may also be owed a tax refund if you overpaid tax. Apply for your UK tax refund today and let taxback.com get your UK tax affairs in order – better late than never.

Use our FREE online tax refund calculator to see how much tax you could get back.

Do I have to file a tax return?

Yes. If you're self-employed in the UK you have to file an annual tax return called a self-assessment tax return. You are required to give details of your earnings and any other income you get and this information will be used to work out how much tax you have to pay.

The tax office will automatically send you a self-assessment tax return each year in April and if you receive one you must fill it out even if you don't think you need to. If you send your completed return back by September 30th, the tax office will work out your tax bill for you. If you don't send it back until after January 31 of the following year you will have to pay a penalty plus surcharges on any money owed.

What is self-assessment?

The self-assessment system in the UK is used to report income or capital gains, or to claim tax allowances against your tax bill. It is called self-assessment because you are responsible for making sure the details you provide are correct and ensuring that you pay the right amount of tax – even if you don't actually work out the tax yourself.

The self-assessment tax return is made up of a basic core return and separate supplementary pages - which ones you get will depend on your circumstances and type of income.

You will need to fill in the tax return you receive with full details of all taxable income and gains you received in the year, and you can claim any allowances on it as well.

Tax will be calculated on the profits you made in the tax year. If your accounting period is different from the tax year, then tax will be calculated on the profit arising in the 12-month accounting period that ended in the applicable tax year.

Filing your own self-assessment tax return can be very confusing and complicated. Register online today and let taxback.com sort your UK tax affairs out for you.

Our self-employed customers get an average tax refund from the UK of £1453. Try our FREE online tax refund calculator to see how much cash you could get back.

Can I claim expenses?

Yes, if you are self-employed in the UK you can claim back work-related expenses. Expenses can significantly increase your tax refund and are a vital part of your tax return. Many people forget to include this information and leave thousands of pounds unclaimed.

We can claim back money on many of your work-related expenses such as:

Rent on business property
Work tools
Protective clothing
Buying machinery
Repair and maintenance work on equipment
Work-related insurance
Business miles (using your own vehicle for work purposes)
Advertising
Legal fees associated with the business
Rent and rates

To be considered allowable your expenses must have been incurred and spent for the purpose of the business in the relevant assessment period.

To claim back your expenses we'll need your receipts and records of your income and expenditure. Make sure you fill out the Declaration of Earnings/Tax and Expenses in our UK TaxPack. Apply to get your tax back today.

How does taxback.com work?

Here's how our easy three-step service works:

Send us your documents and signed forms. We'll estimate your refund and give you an online tax tracking account. If you're missing any documents we can get replacements for you.

Chill out while we file your tax return and get you the maximum possible legal refund.

What are the advantages of using taxback.com?

Thousands of people choose our service because:

We get you the maximum legal refund
FREE online refund estimations
Every customer gets a Personal Online Tracking Account – you can follow your tax return every step of the way
All our tax returns are legal and compliant with UK tax law.
Document retrieval service
24-hour customer support and tax refund help
Free phone, free fax, free online tax help with our live chat!
No language barriers - our services are available in: Bulgarian, Chinese, Chinese-Taiwanese, Croatian, Czech, Dutch, English, French, German, Hungarian, Italian, Japanese, Korean, Latvian, Lithuanian, Polish, Portuguese, Romanian, Russian, Serbian, Slovak, Spanish, Thai, Turkish, and Ukrainian.
Money sent worldwide and in your local currency. You can get your refund in: Australian Dollars, Brazilian Reals, Bulgarian Lev, Canadian Dollars, Czech Koruna, Euro, Hong Kong Dollar, Indonesian Rupiah, Japanese Yen, Latvian Lat, Lithuanian Litas, Moldovan Lei, New Zealand Dollars, Norwegian Krona, Pakistan Rupee, Peruvian Nuevo Soles, Philippine Peso, Polish Zloty, Romanian Lei, Russian Rubles, Singaporean Dollar, Slovak Koruna, South African Rands, South Korean Won, Swedish Krona, Thai Baht, Turkish Lira, UK Pounds, Ukrainian Hryvna, US Dollars.

How long will it take to receive my UK tax refund? Where's my refund?

As soon as we have it, you'll have it, because we contact you immediately when we receive your refund from the tax office to organise the easiest way to get it to you.

You can watch the step-by-step progress of your application on your online account. It'll go something like this:

When we receive your documents it takes us just 1-3 working days to get your UK tax return ready. This includes:

Receiving and checking the documents
Estimating your refund
Completing your forms
Sending them to the tax office

Once at the tax office your application takes about 8-12 weeks to process, depending on how busy they are. Our tax team will keep chasing the tax office to see how your application is progressing.

As soon as the tax office sends us your refund, we'll contact you to sort out the best way to get your cash straight to you.

The total estimated time for your UK tax rebate is 8-12 weeks.

How do I know what's happening with my tax return?

You can follow the progress of your UK tax return on your online tracking account. This allows you to see every step of your application. As soon as we have your refund we'll contact you to sort out the best way to get your money straight to you.

Rather talk to a human being? We have staff available to talk to you in 21 taxback.com offices in 18 different countries. Click here to find your local office number or use our Live Chat.

How much will it cost?

First of all, our FREE Online Tax Estimation costs you nothing - just a few minutes to fill it out. We'll email your refund estimation straight to your personal email with no obligation to use our service.

When you send us your documents and signed forms, we'll evaluate your refund and what additional services you need such as document retrieval. Then we'll let you know how much it will cost to file your return for you.

For UK tax refunds we charge from 11% + VAT of the refund received, subject to a minimum processing fee of £50.

Why the minimum fee?

This fee covers all the things that make filing your application with us so easy, such as:

Customer support 24/7 by phone and Live Chat
Online tracking service – in seven languages
Free phone and free fax
Local staff to meet you and guide you through the process in 18 offices worldwide
Tax technicians
Researchers to identify new legal developments to maximise your refunds
Quality team

Can I get tax credits?

Tax credits are payments from the government to help with everyday costs. A tax credit isn't tax and it isn't deducted from your tax bill – it's money that you receive regularly and you can get it even if you don't pay tax.

The tax credit payments you receive are based on your current personal circumstances and your income during the tax year.

If you're responsible for at least one child or young person who normally lives with you, you may be eligible for Child Tax Credit. If you work, but earn low wages, you may be eligible for Working Tax Credit. The amount of tax credits you receive depends on things like your income, how many children or qualifying young people live with you, and if any child or young person is disabled.

Taxback.com can assist EU members to claim tax credits in the UK. For this service we charge £50 and to apply for your tax credits we'll need:

Your National Insurance Number
Your UK bank account
Original child birth certificates
Your P60 or if you're self-employed your tax return

It usually takes about six to eight weeks for this application to be processed. Apply online for your tax credits today.

Can I get Child Benefits?

Child Benefit is a monthly tax-free payment made to anyone bringing up a child or young person. To qualify for Child Benefit you do not need to be the parent of the child or young person but you must be responsible for them. If the child does not live with you, you can only get Child Benefit if:

You pay money to bring up the child
The amount you pay is the same as or more than the weekly rate of Child Benefit
The person they are living with is not getting Child Benefit for them.

Child Benefit for the 2007-2008 tax year is £18.10 per week for the eldest child and £12.10 per week for each additional child.

Taxback.com can assist EU members to claim Child Benefit in the UK and it usually takes about four to six weeks. We charge £50 for this service.

To claim child benefits for you we'll need:

Your National Insurance Number
Your UK bank account
Original Child Birth Certificates

Apply for your UK Child Benefit today.

I lost my documents/I never got my documents – what do I do?

We know it's easy to lose documents or to not even receive them in the first place. That's why we have a dedicated document retrieval team who deal with employers all over the world and can organise replacement documents for you.

You'll find a declaration form authorising us to do this in your UK TaxPack, or if you no longer have it, click here to download another one.

What is a National Insurance Number (NIN)?

Your National Insurance Number (NIN) is the unique number allocated to you by the Department for Work and Pension in the UK. It allows you to work, pay taxes and access public services in the UK.

If you're new to the UK, you'll need to get an NIN. You will use your NIN in all your correspondence with HM Revenue and Customs and the Department for Work and Pension. Your NIN will be used as a reference number for the benefits and tax credits system in the UK and is used for making tax and National Insurance deductions from your earnings.

To get a National Insurance Number in the UK you need to apply at your local JobCentre Plus Office and it can take months. Taxback.com can organise an NIN for you and reduce the application process to weeks.

For NIN applications we charge a fee of £40. Apply online for your National Insurance Number today.

I don't have a UK driver's licence - can I still drive in the UK?

If you're new to the UK, getting a UK driving licence is a good idea as many employers request a drivers' licence to employ candidates and it is also a generally accepted form of ID.

If you have a valid European Community licence, or a licence from Northern Ireland, Gibraltar, Australia, Barbados, British Virgin Islands, Canada, Falkland Islands, Hong Kong, Japan, Malta, Monaco, New Zealand, Republic of Cyprus, Republic of Korea, Singapore, South Africa, Switzerland, Zimbabwe, Jersey, Guernsey or the Isle of Man, you can drive for up to 12 months in the UK - provided your full licence remains valid.

If you want to drive in the UK after those first 12 months you'll need to exchange your licence for a UK licence before the 12 months is up.

We can help you exchange your licence for a full UK one, or help you obtain a provisional UK driving licence if you don't have a full licence in your home country. We charge £75 for this service.

Apply online for your UK Driver's Licence today.

Can I do it myself?

Every tax office in the world is set up to accept applications directly from taxpayers so yes, you can file your return yourself. The reality is though once you submit it, there's no updating process and no feedback until you get a yes or a no, which is frustrating and very worrying.

Preparing your UK tax return will involve getting all the tax forms and trying to put all the information together properly – and it's not as easy as it looks.

[to_change]At the end of the day ask yourself - Would I wire my own house? The reality is no, I wouldn't - I'd use an electrician. It's a technical, professional piece of work, so I'd get a technical professional to do the job properly. I don't want to risk my house blowing up![to_change]

It's the same with tax. Our taxback.com customers rely on us as technical professionals to file their UK returns and get their tax back. Last year we filed nearly 9000 UK tax refund claims. Our customers tell us they knew trying to file it themselves would lead to stress and a possible loss of money in refunds.

Filing your return yourself won't make your house explode, but it can result in lots of stress and leave you out of pocket if you miss out on refunds you're owed.

It's easier for you to let us put our 11 years of experience filing tax returns to good use by doing all the work for you. It makes sense to use an expert.

Use our FREE online refund calculator to see how much tax you could get back.

Can you guarantee that I'll receive the refund amount you estimated for me?

No, but we do guarantee to get you the most money back that we legally can.

Our estimate is based on your documents and our experience in filing thousands of tax returns every week since 1996. Naturally, the UK tax authority has the final decision in your tax refund based on their systems and tax codes.

When our tax technicians prepare and file your return, they check for any benefits you could get and ensure we apply for the maximum rebate possible.

I've worked abroad in other countries- can you help me to claim refunds from these countries?

Absolutely! We've been organising tax refunds for people working all over the world since 1996. If you've worked in any of the following countries click on them to apply for your refund!

Australia tax refund	Austria tax refund	Belgium tax refund
Canada tax refund	Denmark tax refund	Germany tax refund
Gibraltar tax refund	Guernsey tax refund	Holland tax refund
Ireland tax refund	Japan tax refund	Luxembourg tax refund
New Zealand tax refund	Norway tax refund	US tax refund

Our research team is constantly developing tax return services for new markets so if you've worked in a country not mentioned above, email our team on newtaxes@taxback.com to see what we can do for you.