HOW do I pay taxes as an independent contractor (ballet teacher)

Please help!

I'm going in circles here. between googling answers and asking people these past 2 weeks with no help.

I just want to be sure I'm paying my taxes properly but no one will give me a straight answer.

I'm in the UK on a spousal visa. I teach ballet at 2 studios. They pay by direct deposit into my bank account. Neither pay ANY taxes for me. (there are no contracts or anything)

This means I am self employed correct? However, I do not own a business.

I've already been to the local citizens advice bureau. They redirected me to HMRC website which I honestly can not seem to get anywhere on.

I've been on HMRC tried to register and it keeps giving me the error that I
need a Unique Taxpayer Reference (UTR) but can't seem to do anything to actually get this.

Can anyone please help? I'm so frustrated.

This means I am self employed correct?

Yes, that's correct.

However, I do not own a business.

Not in the traditional I-have-a-shop-and-I'm-the-owner sense, but you have a business in the I'm-my-business sense. For HMRC purposes, you're a self employed sole trader, and you do self-assessment taxes.

I've been on HMRC tried to register and it keeps giving me the error that I
need a Unique Taxpayer Reference (UTR) but can't seem to do anything to actually get this.

Is this link where you were? That's where I'd start.

Hope that helps!

Yes, that's correct.

Not in the traditional I-have-a-shop-and-I'm-the-owner sense, but you have a business in the I'm-my-business sense. For HMRC purposes, you're a self employed sole trader, and you do self-assessment taxes.

Is this link where you were? That's where I'd start.

Hope that helps!

Thank you! So I am self employed.

The link is https://online.hmrc.gov.uk/service/self-assessment?action=enrol&step=enterdetails&services=self-assessment#pageError.individualSelfAssessment

Again I can't even register on HMRC because I do not have a UTR number.

I'm started to get nervous as I heard this years taxes are due april 6, but I don't even know how to prepare my taxes or where to send them!

Sorry, I'm a moron, and forgot to put the link in my last post:

https://www.gov.uk/register-for-self-assessment/overview

Try that and see if you can get anywhere.

Sorry, I'm a moron, and forgot to put the link in my last post:

https://www.gov.uk/register-for-self-assessment/overview

Try that and see if you can get anywhere.

Oh, it's ok, I've been there. I kept getting into a circular click-a-thon.

I *THINK* I may have found the form to get my UTR. Nothing is very straight forward.

Thank you for your help!

You will have to register in the UK as self employed and pay UK income and payroll taxes. If you are a US citizen you need to also file US taxes, but you can exclude income from US taxation using FEIE or get credit for UK income taxes you pay. The tricky bit in this is your payroll taxes....NICs in the UK and FICA/Medicare in the US. To avoid FICA/Medicare you need to get a certificate of coverage from the UK and include that with your US tax return.

You will have to register in the UK as self employed and pay UK income and payroll taxes. If you are a US citizen you need to also file US taxes, but you can exclude income from US taxation using FEIE or get credit for UK income taxes you pay. The tricky bit in this is your payroll taxes....NICs in the UK and FICA/Medicare in the US. To avoid FICA/Medicare you need to get a certificate of coverage from the UK and include that with your US tax return.

Yikes, this is really complicated. I have the USA taxes sorted (just mailing off a final form this week!). I'm mostly struggling with the UK side. I just filled out the form for the UTR number. Once I get that I am to register for a self assessment I guess?

I just worry about having all the information, I don't want to miss any forms or miss any taxes that I didn't know I needed to pay and then get into trouble!

Thank you for the help

I'm started to get nervous as I heard this years taxes are due april 6, but I don't even know how to prepare my taxes or where to send them!

Whoa! Time to step back and take a deep breath.

The UK tax year does not end until the 5th of April. You will have from the 6th of April until the 31st of January of the following year to complete the self assessment tax form. Now, I may be wrong on this if there is something special about returns for sole traders. I'll leave that to others who are far more knowledgeable on that than I.

Whoa! Time to step back and take a deep breath.

The UK tax year does not end until the 5th of April. You will have from the 6th of April until the 31st of January of the following year to complete the self assessment tax form. Now, I may be wrong on this if there is something special about returns for sole traders. I'll leave that to others who are far more knowledgeable on that than I.

Oh? I was told by the citizen's advice bureau (in my area) that I had to pay by april 6 THIS year. Maybe I miss understood? If I don't have to pay until next april 2017 then I have plenty of time to sort this out. (My first job payment ever in the UK was Feb 2, 2016).

Thank you

Oh? I was told by the citizen's advice bureau (in my area) that I had to pay by april 6 THIS year. Maybe I miss understood? If I don't have to pay until next april 2017 then I have plenty of time to sort this out. (My first job payment ever in the UK was Feb 2, 2016)

The UK tax year runs from 06 April to 05 April of the following year. It's not like the US Jan to Dec.

Feb. 2016 will be in the 2015/16 tax year. The period for filing for that tax year does begin on 06 April 2016.

Unless there are special rules for sole traders (and this is an area I know nothing about), you would have until 31 Jan 2017 to file (and pay) the self assessment.

EDIT TO ADD:
These pages may help you.

https://www.gov.uk/working-for-yourself

https://www.gov.uk/working-for-yourself/what-you-need-to-do

It looks as though being a sole trader you will have 2 tax deadlines each tax year, 31 January and 31 July.

Unless there are special rules for sole traders (and this is an area I know nothing about), you would have until 31 Jan 2017 to file (and pay) the self assessment.

The tax year is the same for sole traders.

As for the payments, they split them up so you pay half in July and half in January. For example, on the 31st of January 2016 I paid the second half of my 2014/2015 taxes, and the first half of my 2015/2016 taxes. The second half of my 2015/2016 taxes is due on the 31st of July 2016.

"How do they know how much your 2015/2016 tax bill is if the tax year hasn't ended yet?" you may be asking. They guess, based on your previous year's tax return, and the payments are adjusted if the amount of tax to be paid is more or less than the estimate.

For me, this becomes exceptionally complicated if I try to think about it using my non-accountant mind. Happily, filling out the self-assessment online isn't that hard.

EDITED TO ADD: I typed some of this while the OAP was editing their reply, which is why some of the info repeats what they said.

Yikes, this is really complicated. I have the USA taxes sorted (just mailing off a final form this week!). I'm mostly struggling with the UK side. I just filled out the form for the UTR number. Once I get that I am to register for a self assessment I guess?

I just worry about having all the information, I don't want to miss any forms or miss any taxes that I didn't know I needed to pay and then get into trouble!

Thank you for the help

Are you filing a schedule C? If you are self employed you get to deduct expenses from your business profits and you do that using Schedule C. If you were in the US you'd also have to pay self employment tax using Schedule SE, but as you are in the UK and paying NICs you need to make sure you get exemption from US payroll taxes on your UK self employment income.

I'd hold off on the US tax filing (you have lots of time) and make sure you are filing correctly.

EDITED TO ADD: I typed some of this while the OAP was editing their reply, which is why some of the info repeats what they said.

We all thank you for your post. Nothing is better than the voice of experience.

We all thank you for your post. Nothing is better than the voice of experience.

Happy to help!

The UK tax year runs from 06 April to 05 April of the following year. It's not like the US Jan to Dec.

Feb. 2016 will be in the 2015/16 tax year. The period for filing for that tax year does begin on 06 April 2016.

Unless there are special rules for sole traders (and this is an area I know nothing about), you would have until 31 Jan 2017 to file (and pay) the self assessment.

EDIT TO ADD:
These pages may help you.

https://www.gov.uk/working-for-yourself

https://www.gov.uk/working-for-yourself/what-you-need-to-do

It looks as though being a sole trader you will have 2 tax deadlines each tax year, 31 January and 31 July.

Thank you! I'm going to check though out now