Advice on small business

acharris

Hi all, I wonder if anyone can help me. I am looking to start up a small business selling on ebay, and I have looked into things like Inland revenue and registering, but I have 2 questions below:

1) I am on Job Seekers Allowance and I was wondering if I could move to some other help as I would most like only be making around £15 - £20 a week profit after everything taken out, and I don't know I would manage if I set up 30 hours and claim WTC to top me up the rest or have my benefits adjusted accordingly.

2) Also with small earning of around £1100 - £1300 a year would this be a lot of tax to pay this small amount or not. what would I budget my tax for approx. Also I know I can register for NI exemption.

Any help is appreciated. Thanks.

Anthony

Seraphim

For tax rates, see this link --> http://www.bbc.co.uk/radio1/onelife/work/rights/law_tax.shtml
For NI rates, see this link --> http://www.direct.gov.uk/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/BeginnersGuideToTaxArticles/fs/en?CONTENT_ID=4015904&chk=izW7Qe

Basically, if you earn under about £4500, you won't need to pay tax (unless you setup an actual company - in which case, I'm not too sure about corporate tax rates). As you would be 'self-employed', you would also have to pay a fee of £2.10 per week National Insurance plus a percentage of any profits over £5,035.

For the amounts you are quoting above, I would say you don't need to pay tax (although you will need to let the tax man know how much you are earning) and you should just have to pay a flat fee of £2.10 NI per week.