Sideline

Blunda

Hello

I am a computer professional who does shift work. I have a 10 month old who is the apple of my eye but a drain on my income! For this reason I am looking to supplement my income. I thought I would offer my services for home computer repair, nothing much, just word of mouth for a little extra money. I was wondering where I stand with declaring this for tax purposes etc. I don’t plan to make a business of it, or get rich out of it, just a way to earn a little extra money. Is there so much I can earn without declaring it? is there any other costs involved?

Any advise appreciated

jhp

You need to register with HMRC whatever your income even if your making a loss,and keep full records of income and expenditure.

Newly self-employed tax helpline: 0845 915 4515

or use online registration

http://www.hmrc.gov.uk/selfemployed/register-selfemp.htm


PS. The Tax Forum is here:http://forums.moneysavingexpert.com/forumdisplay.php?f=22

mizzbiz

You do need to register as self employed on the HMRC website and declare any income on a Self-Assessment form at the end of the year. Unfortunately you still have to declare it even if it's £100 per year. Whether you make any 'profit' out of this is another matter. Once you've paid for equipment, bills etc, the actual taxable income will reduce. You only pay tax on income-expenses.

You would also be liable for class2 NI contributions, however, because you will make so little and are already covered by your full time job, you can file for exemption from paying this. Chase them though, as they do not make this clear. They just start sending you quarterly bills afetr you register as self-employed and fail to mention that you can avoid this.

There are no limites and thrfesholds - all income is taken into account. Your only tax free limit is the one you get normally (I.e 7450 per year or whatever it is now). This is usually wiped out by your first job, so you pay tax at your standard rate. If you are already a very high earner, this will be 40%. If you earn a normal wage, this is 20%.

dnkm

Phone up your local tax office and talk to them about it - they're normally very helpful and will make it clear what you need to do. You will need to declare and pay the tax due on the extra you earn as the other posts say. Doing the self-assessment online is pretty simple and doesn't take long, but remember that you have to declare your total earnings, so make sure you have your P60 from your full time job to hand, as well as the records of your extra earnings.

Blunda

Do I need to Register the company? What else would I need to do? Or is registering as self employed enough?