Last week we discussed the financial obligations of self-employed persons for income tax, National Insurance Scheme (NIS) and National Housing Trust (NHT). This week we’ll complete our look at all the various taxes that the self-employed are responsible for paying.

Education Tax

Self-employed persons are required to pay two per cent of their statutory income in education tax every month. If you’re new to business you’re probably unsure of exactly how much income you may earn for the year, or initially you might not earn any net income at all.

The amount of education tax you pay will be based on the expected taxable earnings that you indicated in your estimated income tax return form, so it’s best to be conservative with this estimation.

It’s interesting that although there are constant reminders about paying your income tax, you hardly hear about your responsibility to pay education tax. In fact, I discovered that even the Inland Revenue Department seems a little ambivalent about when this tax should be collected. Continue reading Too many taxes for the self-employed? →