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]

re

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]

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.

 

[retired_member21]

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.

 

[retired_member32]

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]

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

 

[diablo]

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

Paypal leaves the clearest of trails for the taxman.

Look into informing HMRC about your earnings. It could be that after allowable deductions, you won't owe any tax anyway, given the increased size of the personal allowance.

But if you are getting benefits, etc., and not declaring income earned online, it could backfire big time on you further down the road.

 

[Retired_member41]

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

I spoke to someone last year as I'm employed and sell the odd domain or two and while getting advice I mentioned paypal.

They said not only were they aware of paypal but paypal send them so many details of people they suspect of money laundering. That they unearth lots of garden shed businesses turning over fortunes. He said lots of them should even be vat registered never mind self employment.

If anyone's unsure about things and the phone is awkward to explain. You can make an appointment to see them.

Not to scare anyone but they do often leave people for years without saying anything. And then one day knock knock lol. They can go back 7 years.