Have I started my own Biz by accident?

bridiej

I worked from home but didnt tell the mortgage provider. Unless you're going to be holding any amounts of stock items I dont think you need to worry. Ditto with the house insurance.

sarah_elton

silverbirch wrote:

please note that even if your not earning enough to pay tax, you must register with the tax office within 3 months of starting a self employed business otherwise they will fine you £100. Many avon sales leaders discover this when its too late as avon never think to pass on this info to new sign ups.

I phoned last night and was told about the fine, as I started working in July - whoops!

However, if your profit to the end of the tax year is under £4,000 you're classed as a smaller earner, and they said I could appeal the fine - I'd get it but could then claim it back I believe.

tiff

Is there any info on this online? I've also started two websites as a hobby but they are making money too. I dont pay tax as I do a one day a week job that pays £224 a month.

skintchick

southernscouser wrote:

I know everyone is gonna slam me for this but I'd keep quiet! Unless you start making a small fortune out of it what they don't know won't hurt them!

But what they subsequently find out may hurt you!

sarah_elton

tiff wrote:

Is there any info on this online? I've also started two websites as a hobby but they are making money too. I dont pay tax as I do a one day a week job that pays £224 a month.

The official help is on the IR website:

http://www.hmrc.gov.uk/sa/selfemp.htm

They also have a phone number for new small business people with advice (though they will "encourage you" to register so I wouldn't recommend phoning for general advice - but if you decide to declare etc, they are helpful on the process etc).

Savvy_Sue

sarah_elton wrote:

They also have a phone number for new small business people with advice (though they will "encourage you" to register so I wouldn't recommend phoning for general advice - but if you decide to declare etc, they are helpful on the process etc).

Of course things may have changed, but when I have phoned for advice I used to find I could often get it without giving any personal details. And I found them unfailingly helpful.

bridiej

Savvy_Sue wrote:

Of course things may have changed, but when I have phoned for advice I used to find I could often get it without giving any personal details. And I found them unfailingly helpful.

Ditto, I think they would rather you phoned them and got the right advice than just muddle through and do it wrong...

KevinLawry

When I was staying at home looking after my daughter I was registered as self employed, I made a financial loss, which enabled me to offset against tax liabilities from when I was working, and because I was able to claim (legitimatly by the way) that I was working over whatever the limit hours wise was back then I was able to register for full working families tax credit - which gave us all the free medical stuff like prescriptions and such like.

All in all the effort was worth it, but only because I played it by the rules - had I cheated I would have still made a loss but not had any of the tax gains. Your milage may vary but is worth considering the whole package

:xmastree:

kscour

It is always best to be 110% honest with Inland Revenue. You may have started a few months ago but when you did I imagine you were just looking to offload unwanted finished craft items and then you realised perhaps they could have a real value. Household insurance? What extra do you need to insure? But if you can approach them and explain the situation and also the lack of impact I would imagine that there will be no extra premium but if something should ever happen - god forbid - then they would have no get out clause.
Claim everything you can against tax - just think would I have spent this otherwise - so p&p, stamps, stationery, parking charges, petrol/diesel, to a degree use of your car if you have to, Always imagine that you are working for somebody else - would you fork out for a couple of first class stamps for the boss of a multi-international company?
You can also claim for a small part for heat, light,space in your house for working from there against tax.
And if you make anything above pin money level then find yourself a good accountant and never begrudge him a penny in fees - he'll be worth every penny!

lex

Just to add, it's only the additional costs of heat and light, plus any separately metered services that can be claimed.

Council tax, water rates, mortgage interest, and house/contents insurance cannot be included in the calculation.

I believe the IR are clamping down on this at the moment.

Hope this helps someone

lex
:rudolf: