Dont understand mortgage etc. HELP!!!

robin_banks

nuttymummy wrote: »

dvardysshadow

thank you....believe it or not...and as pathetic as this sounds....i actually cried reading WTTMs comment and again....filling up now!

i currently make wedding cakes etc, and was maybe looking into setting up a business (like a part-time work at home job) that way i can look after the kids and make cakes whilst they are at nursery, napping, and when they have gone to bed.

trouble is i asked about this is another part of the forum and they said i would need insurance, health n hygiene certificates etc. but i was aiming only for part-time and maybe earning under X amount so i didnt have to pay tax....is that true?

You'll get allowances as to what you can claim against tax, though income from self employment can't really be used in a mortgage application unless you've been trading 3 years.

Renting isn't really 'dead money'.

robin_banks

nuttymummy wrote: »

thank-you robin banks. i just wish it wasnt so hard!

Just console yourself with the fact you're doing the right thing.

nuttymummy

really?! so even if i did have a business it wouldnt count for another 3 years? LOL god who thought of all these stupid rules!! LOL

x

robin_banks

nuttymummy wrote: »

really?! so even if i did have a business it wouldnt count for another 3 years? LOL god who thought of all these stupid rules!! LOL

x

Lenders want to see that your business is a genuine going concern and not (no offence) a fly-by-night operation. 3 years sets of accounts will generally satisfy them.

nuttymummy

is it possible to have a 'part-time' business though, and what is the amount u can EARN in a year without having to pay tax?
and what do they class as earnings.....say i charge £40 for a cake...but £30 was ingredients n supplies...do they say i have EARNT £40....or £10?

robin_banks

nuttymummy wrote: »

is it possible to have a 'part-time' business though, and what is the amount u can EARN in a year without having to pay tax?
and what do they class as earnings.....say i charge £40 for a cake...but £30 was ingredients n supplies...do they say i have EARNT £40....or £10?

You've earned £40.00, £10.00 'profit'. I'm an accountant but no tax expert.

You will be able to offset things like materials, fuel etc against the amount of tax you pay

nuttymummy

i see....so say the threshold for the tax..per year is..£5000 if i earn under that i wont pay tax. but if i earn £5300 i could show them what i have spent on materials etc to the value of around £300 and still not pay tax?

wish i had paid more attention to things growing up instead of playing video games! i know NOTHING about politics, tax, mortgages, houses, insurance, royal family, current news etc,.
i just walk round with my head in the clouds!

robin_banks

You may well not end up paying tax, the tip is to keep all reciepts, phone bills, utility bills etc?.

Why not get paid to test video games ?.

nuttymummy

mmm now that WOULD be cool but wouldnt know where to start!

nuttymummy

OMG how STUPID AM I!!!??

this whole time i never even noticed what ur user name is.. HA HA its only just clicked!! ur real name isnt robin is it?? LOL i am seriously dim