small business and tax

luvbargains

Hi i am thinking of starting a website which will sell items, but it's just as a hobby. It will not earn alot of money but i do not no alot about tax and was wondering how it all works and how much you pay for low amounts?
Sorry if this is a silly question!

Thanks,
Sarah

superfly_2

not exactly sure myself but talk to the people at business link and they will give you all the help you need ....free ofcourse

http://www.businesslink.gov.uk/bdotg/action/directory?r.l1=1073861225&r.s=h

windswept

If you have other paid employment that uses up your tax free allowance ( about £5k), then yes , you have to pay 22% on all your profits, also if you will make an amount over the limit for exeption, you have to pay class 2 ni, and possibly class 4 as well, you can check the figure on hmrc website.
if you're a sahm, you won't start to pay tax or ni until your profits go over the limit. I work 14 hours a week, just over the tax free limit, but applied for exeption of ni and got it because our business won't make anywhere near the £5k or so, having only started it in october. I will pay 22% tax on the profits we have made. basically all you need to do is register as self employed with hmrc, they will invite you to a free tax workshop which is worth a few hours of your time. what I am unsure of , is whether any tax credits / benefits affect things.