Should I have to pay income tax on contribution to home office rent from company?
This is essentially a reimbursement of your expense. Since you can deduct the expense, the fact that the reimbursement is taxable doesn't affect you much. You deduct your home office expenses on your annual tax return using form 8829. See the IRS site for more details. If you're asking about the UK tax, there may be some other considerations, but from the US tax perspective it is (nearly) a wash.
"Gross income is used because there are a lot of variables inherent in the calculation of a ""net income"", including a lot of things under your direct control that you could use to game the system. ""Net Income"", as others have inferred, is a very flexible term. For the average individual, the definition that would most easily come to mind is likely post-deduction, post-tax earnings; ""take-home pay"". It sounds reasonable, too, as the amount you take home each month can be easily demonstrated with your two most recent pay stubs (which you need to bring in anyway to verify gross earnings). However, even that simplistic definition is fraught with possibility. You have the ability to modify your pre-tax deductions, such as for retirement or healthcare, and that in turn affects your taxes and thus your net take-home pay. To assume that you won't do that is foolish for the loan officer. Other definitions of ""net income"", such as, in the case of shopping for a house, ""disposable income plus current rent"", are the result of even longer lists of deductions from gross pay. Many are also dependent on your current home; your electric bill is a function of the size, location and construction of your current home, all of which will change as soon as you move in. Your other bills, such as telecom (TV/phone/internet) are also more or less location-dependent, as even within a single city or metro area, your choice of services and service providers is dictated by the home's physical location. You may have to pay through the nose right now because your current home isn't serviced by anyone's fiber-optic network, while the home you're moving into could be in a hotly-contested area with access to multiple fiber-optic trunks. So, to simplify all this, mortgage companies simply ask for gross income, then apply a metric that makes relatively conservative assumptions about your spending habits to arrive at a final amount. The upside is simplicity, the downside being that two people both making $60,000/yr may have two completely different financial pictures behind that single number." "Get an accountant. Now. There are many subtle things that you do not know especially if you are just starting with your own corporation. There is also an issue of corporate tax return that you will have to face pretty soon. You should be looking for accountant that does accounting for corporations, there are companies specializing in small business. I do not think you can ""just"" transfer money to your personal account. They have to be treated as dividends and treated as such for income tax purposes. Or, as you described, you may pay yourself a salary, but then you have to pay CPP and EI on top of that. When you pay yourself dividends your corporation will need to issue T5 slip for you (accountant will do that) that you will need to use when preparing personal tax return. If you pay yourself salary, corporation will need to give you T4  In terms of tax treatment, if we do not take RRSP contributions dividend tax treatment will leave little bit more money in your hands. I'd say if you have RRSP room and/or TFSA room, pay yourself dividends and then do contributions as you see fit, if you need RRSP room, pay yourself salary. TFSA room does not depend on the type of income, so if you have room there, consider filling it first." It depends how you do it.  If you roll it from your 401k directly to a Roth then you will have to pay the taxes.  The contributions to the 401k are tax deferred.  Meaning you do not owe taxes on the money until you collect it.  Roth contributions are post tax but the gains are not taxed so long as they are disbursed under acceptable conditions according to the regulations. If you roll it directly from the 401k to a regular tax deferred IRA you should be able to do that with out penalties or taxes.  You will still have to pay the taxes at disbursement. If you have the money disbursed to you directly then you will have to pay the penalties, fees, and taxes.  Your contributions to an IRA will then be subject to limitations based on the IRA.  It will literally be exactly like you are taking money from your pocket to invest in the IRA.   Your company should give you the option of a rollover check.  This check will be made out to you but it will not be able to be deposited in a regular account or cashed.  It will only be redeemable for deposit into a retirement account that meets the regulatory requirements of the 401k rollover criteria.  I believe the check I received a few years ago was only good for 60 days.  I recall that after 60 days that check was void and I would receive a standard disbursement and would be subject to fees and penalties.  I am not sure if that was the policy of T.Rowe Price or if that is part of the regulation. You cannot contribute directly to that 401k account if you no longer work at the sponsoring company - you have to be on their payroll.  You can, however, roll the 401k over into an IRA, and contribute to the IRA. Note that in both cases, you are only allowed to contribute from earned income (which includes all the taxable income and wages you get from working or from running your own business). As long as you are employed (and have made more than $5k this year) you should have no problem. I am not certain whether contributing your $5k to a roth IRA would help you achieve your tax goals, someone else here certainly can advise. "Being self-employed, your ""profit"" is calculated as all the bills you send out, minus all business-related cost that you have (you will need a receipt for everything, and there are different rules for things that last for long time, long tools, machinery).  You can file your taxes yourself - the HRS website will tell you how to, and you can do it online. It's close to the same as your normal online tax return. Only thing is that you must keep receipts for all the cost that you claim.  Your tax: Assuming your gross salary is £25,000 and your profits are about £10,000, you will be paying 8% for national insurance, and 20% income tax. If you go above £43,000 or thereabouts, you pay 40% income tax on any income above that threshold, instead of 20%, but your national insurance payments stop." "New York State is one of a few states that will go after telecommuter taxes (such that some people may end up paying double tax even if they don't live in NY).  There are a few ways that you can avoid this. If you NEVER come to NY for work, and your employer can stipulate that your position is only available to be filled remotely, you will likely be covered. But there are a myriad of factors relating to this such as whether the employer reimburses you for your home office and whether you keep ""business records"" at your office.  Provided you can easily document the the factors in TSB-M-06(5)I, you shouldn't have to pay NYS taxes.  (source: I've worked with a NYS tax attorney as an employer to deal with this exact scenario)." Be ruthlessly meticulous about the IRS regulations for deducting a home office.  If it's allowed, it's allowed. "Yes, that's right; in the end, tax is charged on the total of your income in a tax year. PAYE on employment income is just a way of making incremental payments throughout the year. Note that tax rates are marginal rates applying to bands of salary, not the entire salary. But as your employment salary would be already over the 40% threshold (£45,000 for 2017/8), the entire ""extra"" from self-employment would indeed be taxed at 40%. Note that you'll also owe National Insurance contributions. In general if your employed income is over the higher-rate tax threshold, it should be 2% Class 4 NICs on the self-employment income. However, due to various complications in the way the system works, you might be initially charged more than that and and explicitly claim the excess back from HMRC. It might also be less if your earnings are below or only slightly above the ""Lower Profits Limit"".  You still get to keep 58%, only you can decide whether that is worth your time or not."