Tax

Self-employed people are responsible for paying their own tax and National Insurance. They have to keep a detailed records of what they earn and spend on the business and send their business accounts to HM Revenue and Customs every year. Most self-employed people use an accountant to make sure they pay the correct tax and claim all the possible tax allowances.

As soon as you become self-employed you should register yourself for tax and National Insurance by ringing the HM Revenue and Customs telephone helpline for people who are self-employed, on 0845 915 4515.

Help and advice

Banks can give information and advice on setting up your own business and offer start-up loans, which need to be repaid with interest. Government grants and other financial support may be available. You can get details of these and advice on becoming self-employed from Business Link, a government-funded project for people starting or running a business - www.businesslink.gov.uk telephone : 0845 600 9 006.

Working in Europe

British citizens can work in any country that is a member of the European Economic Area (EEA). In general, they have the same employment rights as a citizen of that country or state.

Check that you understand:

• Equal rights
  • The categories covered by the law and exceptions
  • Equal job/equal pay regardless of gender
  • The different commissions working to promote equal opportunities
  • The grounds for sexual harassment complaints
• At work
  • The importance of contracts of employment
  • The minimum wage and holiday entitlement
  • Information that has to be provided on pay slips
• Tax
  • What is deducted from your earnings and why
  • The difference between being self-employed and employed
  • Where to get help if you need it when filling out forms
  • The purpose of National Insurance and what happens if you don't pay enough contributions
  • How you can get a National Insurance number
• Pensions
  • Who is entitled to a pension
  • What age men and women can get a pension
• Health and safety
  • Employer and employee obligations
  • What to do if you have concerns about health and safety
• Trade unions
  • What they are and who can join
• Losing your job
  • Where to go if you need advice on a problem at work
  • Possible reasons for dismissal
  • The role of Employment Tribunals
  • Who can help
  • The timescale for complaining
  • Entitlement to redundancy pay
• Self-employment
  • Responsibility for keeping detailed records and paying tax and national insurance
  • The role of business link

Take Free Life in the UK Sample Test:

The www.prepareuktest.co.uk website helps you to prepare for the Life in the UK Test. This site provides you with the practical skills you need to take the British Citizenship Test.