Business start up - tax help pls

maggiesoup

I'm earning some money doing work for a German company. They have indicated that all tax issues are my responsibility. I don't think I'll earn more than about £5,000 in profit over the year but I think it may be best to keep a note of incomings and outgoings in case I need to let the tax man know. However, I've absolutely no idea where to start. Is there a book I can buy or library book or something in a stationers? Don't think it merits using an accountant? Any idea of where to start? Thanks.

fengirl_2

Is this your only job? If not, you will not be liable to tax on a £5000 profit, but you do need to register as self employed within 3 months of starting for NIC purposes. You can claim the small earnings exemption.
You need to keep records of all your income and expenditure and its good practice to open a separate bank account for business use. I would do your book keeping on a simple spreadsheet. HMRC do seminars for the newly self employed and your local Business Link should also be able to help.

maggiesoup

Thanks. What does HMRC stand for?

mountainofdebt

Her Majesty's Revenue and Customs. (its the Inland Revenue and the Customs people merged)