Potential Â£100 fine for self-employed graduates
7,000 self-employed graduates could be risking a £100 penalty in the next few weeks for not paying the right taxes, a North East accountants firm is warning.
The National Council for Graduate Entrepreneurship estimates that more than 7,000 students immediately become self-employed after leaving university. However, if they fail to complete a CWF-1 form, within three months they could face a £100 fine. The tax authorities use the form as a trigger to start collecting Class 2 National Insurance Contributions, check whether the business is liable for VAT and register the individual in the income tax system.
Chleboun, Head of Tax at accountants Baker Tilly explained: “HM Revenue & Customs require people who have become self-employed to notify the tax authorities within three months. While the taxman has tried to make this simple, with website guidance, a telephone helpline and a single form which covers tax, National Insurance and VAT, the time limit is tight and easily overlooked.
This was posted in Bdaily's Members' News section by Ruth Mitchell .