I'm considering going self employed, as a sole trader, I've been trying to get my head round the tax/NI setup. Is it correct that you pay class 2 NIC's throughout the year, and then pay a lump sum of income tax and class 4 NICs off a self assessment?
How do the rates compare to PAYE?, are you better off taxwise? and is it a lot of hassle filing all the paperwork?
Sorry for all the questions, but any help/advice is much apppreciated!

 

Get a good accountant
You can pay Class 2 NIC's by direct debit every month - assuming your tax year is April - March, you will be liable for tax the following January - mind and don't spend all the cash because the Revenue don't do easy payment plans

Depends what you are planning to do though

 

cheers I gathered I was gonna need an accountant after trying to read and understand the Inland Revenues website So if I was to register as self employed on monday, then I would have to do self assessment in January? My plan is to try and work out how much tax/nic I'll be liable for and put that money aside in another bank account so its there when they want it. I've been looking on the web for tax/nic calculators but can only find ones for PAYE. Thats why I'd like to know roughly if you are better off taxwise being self employed, so I dont end up foul of the taxman!