Telling the taxman about my earnings!

Fritha_2

Oki, I apologise now, I'm very new at this and I didn't expect to be in this happy position!

Basically I started advertising a service and get commission on any customers I bring in. I really didn't expect it to do anything and after a few months of making nothing I've changed my strategy and made £300 in November!

Consequently I really need to declare it to Mr Taxman but I haven't the faintest idea where to start! Could anyone offer advice?

I figure I need to set myself up as a Ltd Company (do I?), who do I tell, how do I get the forms to fill out, what do they need to know, (told you I know nothing!)? (And importantly how do I stop them taking lots of my hard earned cash?!)

Ta very much for anything you can tell me to point me in the right direction!

Bell-z

You need to register your self as self employed. Ring up inland revenue and they'll sort out everything for you. You'll need to give a date when you started your mini business. You should look at legal structures depending on how far you wanna take this. Becoming a sole trader is the easiest option, hardly any form filling to do.

So long story short, get on the phone to inland revenue. 0845 915 4515.

Don't leave it too late because you'll get a £100 fine if you don't declare it within 3 months. As far as I know, it is only your profit that's taxed once it reaches around 5k. Hope this helps.

richt71

Fritha wrote:

Oki, I apologise now, I'm very new at this and I didn't expect to be in this happy position!

Basically I started advertising a service and get commission on any customers I bring in. I really didn't expect it to do anything and after a few months of making nothing I've changed my strategy and made £300 in November!

Consequently I really need to declare it to Mr Taxman but I haven't the faintest idea where to start! Could anyone offer advice?

I figure I need to set myself up as a Ltd Company (do I?), who do I tell, how do I get the forms to fill out, what do they need to know, (told you I know nothing!)? (And importantly how do I stop them taking lots of my hard earned cash?!)

Ta very much for anything you can tell me to point me in the right direction!

Just call the tax office and tell them you're self employed and as stated they sort it. You will also need to call national insurance as well.
No you don't need a ltd company. You can be a sole trader. Basically if you're a sole trader the tax office will tax your total income monthly from this and any other income you have (full time job). Setting up a LTD will involve some costs but you can leave profits in a LTD company and until you start paying yourself you'll not get personally taxed