Do I need to register as self employed ?

cgriff

hello,

I`d be so happy if someone could help me.

I am working a full time job earning minimum wage.
I have been working on a friends news website, doing some writing and articles etc
The problem is I`m really unsure what to do about tax.
Do I need to register as self employed? or do I just need to declare my earnings at the end
of the year?.
The amounts so far earned on the website area approx £200 per month extra.

I appreciate any advice as the citizens advice beaureau were not sure.

PlutoinCapricorn

Is the work likely to continue? Is there a chance that you will get more work from personal recommendation or that you will try to find more clients?

If the work is not a one-off job with an end date, then you should register with HMRC as a sole trader. You can then reduce your taxable profit with allowable expenses.

If however, you expect the work to finish and be the end of your extra earnings, then you just declare the income - this can be done in a letter.

cgriff

Hello,
Thank you so much for the reply.

The work is ongoing for the website.

So I will be writing articles and news for it on an ongoing basis.
If some advertising banners are sold, I will get 50% of the money.
But it starts off very slow at the moment, some months I get nothing, but last month I got £240.

Do you think it would complicate my tax code at work etc?
Also Would I need to get a new national insurance number ?

Many thanks

PlutoinCapricorn

It seems that registering as self employed is the right thing to do.

It will not affect your tax code at work, and you do not get a new NI number.

\What you do get is a UTR, a Unique Tax Reference for filing tax returns.

I would invest a little time in research: HMRC's self employment pages and https://www.businesslink.gov.uk

I would put aside 25-30% of the earnings for tax.

You can register using your own name as the business name, and your home address as the business address. There is no need for a separate bank account for intermittent small amounts.

Keep records of your costs and anything you may buy for your extra work.

cgriff

I will check out those links many Thanks.

Is there anywhere listing the allowable expenses what I can claim for?
Are these tax free ?
Will I also be able to claim tax back on travelling to/from work etc ?

PlutoinCapricorn

You need to keep records of everything that you buy for the sake of your freelance work and everything that you are using more of because of this work: e.g. electricity and broadband. Work out the percentage for business use where relevant. The expenses help to reduce your taxable income.

Travelling to your normal PAYE job is not claimable. If your normal place of work for your freelance work is your home, then travelling to see the client is claimable.

texranger

if you have a local tax office, just pop in and have a chat with them

skater_kat

http://www.hmrc.gov.uk/incometax/relief-self-emp.htm