How Much Money Can I Earn Before I Need To Pay Tax?

The amount of Income Tax and National Insurance you should pay are determined by your how much you earn. You are entitled, however, to a tax-free allowance, below which any income will not be taxed. If you are employed this is currently set at �5,035, although it may be higher if you are aged above 65 or are registered as blind. As an employee this will be automatically deducted through the Pay As You Earn scheme.

If you are self-employed, you should register as such with the Inland Revenue within three months of the end of your first month in business. If you fail to do this you could be liable to a financial penalty. After having registered you will automatically be sent a tax return form every April, which you must fill out in order to work out how much tax you should pay. If you fail to return this form by the following 31st January, you could again face a penalty.

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capital gains on a second property sale

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