Self Employed heeeelp!

[matty281k]

Hi,

I have a part time job in retail that brings in around £190 per month.

But the last 2 months a website I've been running has made more than expected and looks like it might continue to make a steady income.


I haven't the slightest clue on what to do regarding tax, what forms to fill out.

Because I have a part time job, I don't know what to do. I don't what to register as a business because it makes no where near enough.

Any advice will be appreciated.

Thanks

[bensd]

Register as self employed with the HMRC, fill out forms and send off or complete tax return online.

[matty281k]

The website has also generated the odd bit of money previous to the 2 months I mentioned, nothing substantial and I never went over my personal allowence combined with my part time job until recently.

Do I need to tell them HRMC about this? will i get in trouble?

Do you have any more information on any kind of tax efficency or savings that can be made if I become self employed?

[alex]

You can claim against things like internet usage, phone calls, stationary supplies, petrol etc. First thing to do is register as self-employed, for which you will pay the minimum NI contributions (can be claimed back), then each year fill out a self-assessment tax form. If you're making enough to cover a bookkeeper they're useful. I pay about £60 per year to get all my tax in order etc. She's not an accountant (hence cost), but knows everything that needs to be known about taxes etc.

[alex]

Originally Posted by matty281k

The website has also generated the odd bit of money previous to the 2 months I mentioned, nothing substantial and I never went over my personal allowence combined with my part time job until recently.

Do I need to tell them HRMC about this? will i get in trouble?

When I registered I was the same. Officially you start as soon as you conduct business, in reality when I spoke to HMRC they said start from now (the time when I called them) so it shouldn't matter too much. As before I'd advise to speak to a bookkeeper - first consultation is likely free so go and discuss it with one.

[Nick]

If you are sole trader also watch out - end of first financial year you pay the same amount again but in 2 payments over the next year - one at the time of payment, one 6 months after that e.g. 50% on top of your tax bill, 50% 6 months later - all based on their predictions

[wb]

You're supposed to register within 3 months of commencing trading I believe, otherwise you can potentially get a fine. One of the most important things to remember is to keep details of income/expenses and allocate money for tax so it doesn't come as a surprise when it's due (if any is).

Visit the HMRC website to register as self employed and after the current tax year ends you will be able to do a self assessment online. As they will have your national insurance code I imagine this will recognise your existing job income earned during the same period and make calculations accordingly.

[deliajen]

or just do what 90% of domainers do....dont pay any tax....simples, ahhh the beauty of paypal

only c***s like me pay tax for my web activity

[philipp]

Originally Posted by deliajen

or just do what 90% of domainers do....dont pay any tax....simples, ahhh the beauty of paypal

only c***s like me pay tax for my web activity

I wouldn't assume that HMRC don't have a relationship with PayPal. I pay my taxes too, painful isn't it!

P.

[monaghan]

HMRC are getting wise to things like eBay & PayPal, don't assume it is safe to avoid taxes, there are stiff penalties and they do apply them. (I've not been done as I pay my tax, but I do know some staff on an HMRC compliance team).

Much simpler to pay what's due rather than having to watch your back