How can i pay my tax in my contract job my self?

Question

How can i pay my tax in my contract job my self?

Answer 1

To sort out your own taxes and payments you have to setup your own limited company.  A high street accountant should be able to help you out running it for around £600 - 800 per year.

Answer 2

You need to establish your employment status.  This is a question of fact - not something you choose because you would like it.

If you are an employee then your employer deals with deducting tax and national insurance.  Nothing to do with you.

If you are self employed then you sort out your own tax and national insurance.

If you operate through a limited company then the situation is more complicated.  Your company will pay corporation tax on its profits and you will pay tax and national insurance on any salaries drawn from the company.