tax question please help

kaylou109

Hi,

I am employed full time but have been working for Avon since May (I make very little it is a hobby but I still registered as self employed)

My question, if I started this may (may 2012) when will I have to do a tax return? Also do I have a seperate tax code to my main job or is it the same?

Many thanks,

Kay

cotswoldaccountant

As you started the Avon self-employment job in May 2012, your first self assessment tax return will be for 2012-13. This will be due by 31st January 2014. To make things simple for yourself, you should prepare accounts from May 2012 to 5 April 2013.

Tax codes are only used for PAYE employment - i.e. to tell your employer how much tax to deduct from your gross salary. You do not receive a tax code for self-employment. Any tax due will be calculated at the time you complete your self assessment tax return. If you are a basic rate taxpayer in your employed job, you should set aside basic rate tax on your Avon earnings (20% of Avon takings less costs). If you are a higher rate taxpayer in your employed job, you should set aside higher rate tax on your Avon earnings (40% of Avon takings less costs). This will mean that when you come to do your self assessment tax return, you will already have the money saved up to pay the tax due, and it won't come as a shock!

John_Pierpoint

How much profit are you making (per month) ?