Help with self employment

JanineB

Hi there, Im looking for some advice on self employed earnings and tax issues.

Im going back to uni on September 21st after a year out. I've been working full time since the start of the tax year and made about £800 p/m after tax.

Im finding it hard to find a part time job for when I go back so I'm looking to make cash in other ways.

My current job in administration is full time and on a PAYE basis. Im leaving on September 4th.

My questions lies with a few issues.

1. The money I will make as a result of doing these things will not be a lot. Im not over the £6475 threshold for the year yet (just), so I am assuming so should be able to apply for small earnings???

2. I will be carry out a number of different things that earn me extra dosh, mystery shopping, surverys, fashion modelling, promotions and extras work. On the form it asks you for the name of your business. I dont have a business as such, I just do a lot of different things that make me money. So what should I fill in on this part of the form? Do I need to fill in a seperate one for each thing? "Im a mystery shopper, a model, a promotions girl, and extra, a survey panellist...." Hmmmm lol.

3. On that note should pay for clicks and cashbacks be declared? Not sure about that one.

4. With expenses as well, how do you calculate this and know what to ask for? I know you should keep reciepts and things but say you use only half your printer ink for mystery shopping reports and the rest for personal use. How can you account for that? I also use a monthly bus pass for travelling, how can you be expected to claim anything back on that if it is also used for non self employed work and personal use?

5. Also with regards to my modelling work. I sometimes carry out unpaid shoots with the sole purpose of upgrading my own portfolio. For these I may need to buy some new props or outfits and perhaps pay a stylist depending on the look Im going for. Im paying money for this and not getting any pay for it myself at the time obviously, but the end result - good shots will hopefully mean more paid work as a result. So am I able to claim back such costs as expenses?
Just all a bit of a minefield for me at the moment.

6. When I was at university before I carried out promotions work for various different agencies I am on the books of. Most of them taxed me on code BR even though I never made over the personal allowance for that year. Im going to apply to get this back but is there anyway to stop this happening in the first place? Im going to see if I can get back into this again as it paid great.

Wanting to get it all sorted, I know how annoying the tax office can be. When I was 16, I started selling on eBay (personal items of mine, not ones I'd bought to sell) and it took my 2 years to get them off my back and drum it into them I was not a trader. I was simply selling on books, cds and clothes. I bought a lot off eBay at the time and liked to sell on stuff pretty quick. I also hoarded a lot of stuff from my childhood so liked to sell of of that off when I could. Still the same today except I have a lot less to sell, mostly university things. But not wanting them on my back again for nothing.

Hopefully I will get a part time job or get back into promo work, soon for uni, but still do the little things when I can to up my income.


***Please not I applied to be S/E the other day so this is done now.*** Please dont tell me not to do this as it's been done


Thanks for your help in advance!


Janine

Dalkirst

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JanineB

Thanks for your help!

Lokolo

I don't know much about self employment so can't help you must.

Business name, how about Janine B's Extra Earners or something. I have a good imagination as you can tell. :cool:

I don't think cashback is taxable income because technically you're not working for it.

4) No idea...

5) Yes I think you can.

fengirl_2

In answer to your questions:
1. The threshold for small earnings exemption is £6035, so if your self employed profit is below that, you can apply.
2. If you dont have a business name, thats fine, just put 'own name'. HMRC will want to see accounts for different types of income kept separate. I would say modelling, extra work and promotions would go together and then I would put the mystery shopping and miscellaneous fee income under something like 'advisory fees'.
3. No
4. You cannot claim back for expenses, you can only include relevent expenses in the accounts for each business so that you receive relief for tax from them. The wholly and exclusively rule applies, so if you would buy a bus pass whether or not you were self employed, then the cost of this cannot be included. However, it is reasonable to include the cost of ink, etc. There is no hard and fast rule - you can include whatever is reasonable and then be preapred to justify it if challenged. At the end of the day, the inspector is not looking to challenge on minor expenses uch as these.
5. You can include these costs - the test is 'would I be paying this if I wasn't doing modelling work?' If the answer is no, then its a business expense and needs to be recorded.
6. Yes, you can reclaim this tax. The only way to stop this happening in future is to hand each employer a P45 when you start with them. This therefore means getting a P45 when you finish with them. I imagine this won't be easy, but you can try!

JanineB

Thanks again Fengirl - a massive help. About the P45 thing for promo agencies. It cant be done which is why it's so messy. In order to get a decent amount of work you need to register with quite a few agencies, so one agency may give you 2 days work whilst you're still on the books of say, another 10 at the same time. I'll just need to claim it back at the end of each year then I think.