Student sole trader - any benefits?

Cheetah

Hi there,

I have to register as a sole trader as I am doing work through my website. Currently I work for Orange (mobiles) retail too but will be leaving that and going to university in September.

Was just wondering if there are any benefits of being a sole trader whilst at university. I.e. Tax and VAT?

The course I am doing is directly related to what I do as a sole trader...
Also, I am getting the student loans down the standard DirectGov route...

Thanks for any insight...

Lokolo

Don't think there is any exemptions or relief for being a student in terms of sole trader.

Cheetah

What if I am VAT registered? I can technically claim back VAT on all my University expenses - can't I?

...or is that a load of crap?

payless

depending on income, age and hours worked - I think you may possibly be able to claim working tax credit

http://microsites.sunderland.ac.uk/financial-counselling/credits-and-benefits/tax-credits

abage22

Cheetah wrote: »

What if I am VAT registered? I can technically claim back VAT on all my University expenses - can't I?

...or is that a load of crap?

As far as I am aware there are no special tax exemptions for students.

As for VAT, no, you can only claim VAT back on work related expenses. You don't have to register as business VAT unless your business income is over £67,000 (or near that figure).

Cheetah

abage22 wrote: »

As far as I am aware there are no special tax exemptions for students.

As for VAT, no, you can only claim VAT back on work related expenses. You don't have to register as business VAT unless your business income is over £67,000 (or near that figure).

Well seen as my degree is directly related to my work (books, equipment...etc...), surely I could claim it all as training costs?...and there are things like mobile phone.

payless

If you say its training costs , think you will need to declare it on your student loan application.

If however the books are purchased by the firm for use in the firm I suppose that could be a valid business expense

Lokolo

payless wrote: »

depending on income, age and hours worked - I think you may possibly be able to claim working tax credit

http://microsites.sunderland.ac.uk/financial-counselling/credits-and-benefits/tax-credits

Students can claim Working Tax Credit if they:

• are 16 or over, have children and are working at least 16 hours a week, or
• are 16 or over, have a disability and are working at least 16 hours a week; or
• are over 25 and working 30 hours a week; or
• are 50 or over, have been claiming Income Support, Jobseekers Allowance or Incapacity Benefit for at least 6 months, and are now working more than 16 hours a week; and
• are not subject to immigration control.

Just a bit more info.