How do I work out tax ??

notlongnow_2

Hi, I may be making a little extra money by selling my own things plus some things I buy with the intent to sell on.

My question is...how do I work out tax? I am keeping a log of everything I sell and for what price, but when it comes to declaring it what do I do? Also do I sort out tax and then inform tax credits when my renewal is due? or will it be on my P60?

I want everything to be above board and honest and in no way want to fiddle anything, neither do I want to be landed with a tax bill I havent accounted for.

It will maybe be £100 a month. I also work 22.5hrs and earn approx 11K a year.

Thankyou for reading.

fengirl_2

The things you are seling which were your own items are not taxable, so you should elave that income out of your records. You should also be recording all f your outgoings and retaining your receipts and invoices. You must register as self employed as soon as possible and a self assessment will be sent to youo at the end of the tax year. You will need to enter your accouts figures on this as well as your salary and the additional tax will be due on 31 Jan and 31 July 2010. The tax will be at 20% of your profit, plus class 4 NI at 8% of profit above about £6000.
I really think you need some help. If you are not going to hire an accountant, then contact Business Link or your local tax office to see if there are any workshops available for small businesses.

notlongnow_2

Thankyou, thats very helpful.