how much can i earn befor telling the goverment and getting taxed

dave0000

i have been thinking i am going to start cleaning peoples gardens and cutting there grass in my spare time for extra cash do i have to get taxed on it if i earn about £100 a month

withabix

You have to declare ALL earnings.

What you are describing is running a business.

Savvy_Sue

Therefore you would need to tell HMRC that you are self-employed, and do it promptly or they will fine you. They will send a tax return at the end of the financial year, and you fill in on that all your earnings, both employed and self-employed.

If you already have a job on which you pay tax through PAYE, you're likely to be using all your tax allowance there, so you'll be paying tax on ALL your self-employed earnings, but not yet. So you need to put 25% to one side for tax.

Then there's NI, you may be able to get an exemption certificate, if your s/e earnings are low enough. Mine always were so I can't tell you which class you'd have to pay or how you'd pay them, but the HMRC website is useful there.

If you have any expenses incurred in the course of your business, you can put them into your accounts to reduce your tax liability. So that's travel to your s/e work, tools you purchase, publicity etc. Keep all the receipts.

That'll do for starters ...

Fash

Hi - hope I'm not encroaching on this thread but if I am please let me know and I'll re-post.

My friend and I decided to set up a business a couple of months ago - we were both unemployed. We got a company name and sent out leaflets advertising our services. I've now been offered a full-time job which means that I can't work for the business. My friend has been approached to carry out a piece of work for someone and she is going to register with HMRC as a self-employed individual. As I haven't done any work for the business and don't now anticipate doing any as I'll be working full-time for the foreseeable future, do I need to register with HMRC?

Any advice would be appreciated.
Thanks and regards

dave0000

Savvy_Sue wrote: »

Therefore you would need to tell HMRC that you are self-employed, and do it promptly or they will fine you. They will send a tax return at the end of the financial year, and you fill in on that all your earnings, both employed and self-employed.

If you already have a job on which you pay tax through PAYE, you're likely to be using all your tax allowance there, so you'll be paying tax on ALL your self-employed earnings, but not yet. So you need to put 25% to one side for tax.

Then there's NI, you may be able to get an exemption certificate, if your s/e earnings are low enough. Mine always were so I can't tell you which class you'd have to pay or how you'd pay them, but the HMRC website is useful there.


If you have any expenses incurred in the course of your business, you can put them into your accounts to reduce your tax liability. So that's travel to your s/e work, tools you purchase, publicity etc. Keep all the receipts.

That'll do for starters ...

but what if i say i earn £100 a month and have to pay 25 tax but some months i only earn 20 i will be loseing 5 pound a month because i only plan to walk around my area knocking doors and asking,if people say no i earn nothing it will only be till the end of summer as well
i dont think im going to bother its too much hassel for a couple of hundred pounds

terryw

Fash wrote: »

Hi - hope I'm not encroaching on this thread but if I am please let me know and I'll re-post.

My friend and I decided to set up a business a couple of months ago - we were both unemployed. We got a company name and sent out leaflets advertising our services. I've now been offered a full-time job which means that I can't work for the business. My friend has been approached to carry out a piece of work for someone and she is going to register with HMRC as a self-employed individual. As I haven't done any work for the business and don't now anticipate doing any as I'll be working full-time for the foreseeable future, do I need to register with HMRC?

Any advice would be appreciated.
Thanks and regards

Personally, I would let them know either by letter or in your next tax return that you did make the initial steps of starting a small business but did not actually do any work. The income tax people are well known for collating information from leaflets, adverts, shop-window cards etc etc as well as information from phone calls. It is not going to cost you anything as you've earned nothing but it might save you grief and time if they uncover one of your leaflets and you have not mentioned it.

terryw

Debt_Free_Chick

dave0000 wrote: »

but what if i say i earn £100 a month and have to pay 25 tax but some months i only earn 20 i will be loseing 5 pound a month because i only plan to walk around my area knocking doors and asking,if people say no i earn nothing it will only be till the end of summer as well
i dont think im going to bother its too much hassel for a couple of hundred pounds

You don't pay your tax as you go along.

At the end of the year, you prepare your accounts. You then pay tax on any profit you've made.

To be honest, I think you'll struggle to run your own business unless you get some help.

COOLTRIKERCHICK

as debt free chick has said you pay tax on your PROFITS... so what ever you buy to use in your business will go down for expenses. tools work boots, wellies etc.

you have up to 3 months to delcare your business to mr taxman.

just becuase you have your own business, doesnt mean you will 'rake' the money in ( excuse the pun) what ever business people start up, there isnt instand profits that you can retire on..lol...

but you could build on your business idea and make your business grow.

i would suggest you go and have a chat with business connect or a similar organisation, who can help you make a decission on where to go and what to do with your idea.

the only thing i can say there are loads of people in the summer months try and make a 'quick' buck by offering to do people's gardens, and with the recession people are cutting back on their spending, and poss garden maintenance is going to be one of them..

good luck...