Very small/hobby business?

littlerussell

Any advice on how to go about this would be welcome!

I have created a "teacher resource book" which I suspect might be quite marketable given the response from colleagues. It would seem that this might generate a small amount of pocket money (thinking a few hundred pounds per year). I have the skills to create a website linked through paypal, etc. which would basically run itself based on pdf downloads.

I currently only have one income stream (my employment) and therefore pay tax through PAYE (just below 40% threshold).

A few questions as to how to do this legally?

1. Do I need to register anything initially with the tax people, or can I just request a tax return at the end of the financial year and declare this as additional earnings?

2. Can I run this through paypal and then transfer the income directly to my own bank account, or do I need a business account?

3. If it takes off, what if I wanted to print and offer hard copies? What if a school wanted to buy via an invoice system (this is normal in the public sector)? Does this change the dynamics at all?

4. What records do I need to keep - just a list of sales & outgoings, backed up with printed records & invoices?

5. Is there anything else I need to consider here?

Wywth

littlerussell wrote: »

Any advice on how to go about this would be welcome!

I have created a "teacher resource book" which I suspect might be quite marketable given the response from colleagues. It would seem that this might generate a small amount of pocket money (thinking a few hundred pounds per year). I have the skills to create a website linked through paypal, etc. which would basically run itself based on pdf downloads.

I currently only have one income stream (my employment) and therefore pay tax through PAYE (just below 40% threshold).

A few questions as to how to do this legally?

1. Do I need to register anything initially with the tax people, or can I just request a tax return at the end of the financial year and declare this as additional earnings?

2. Can I run this through paypal and then transfer the income directly to my own bank account, or do I need a business account?

3. If it takes off, what if I wanted to print and offer hard copies? What if a school wanted to buy via an invoice system (this is normal in the public sector)? Does this change the dynamics at all?

4. What records do I need to keep - just a list of sales & outgoings, backed up with printed records & invoices?

5. Is there anything else I need to consider here?

1. http://www.hmrc.gov.uk/selfemployed/register-selfemp.htm
You can be employed and self employed at the same time

2. Most personal bank accounts prohibit their use for business purposes. Whilst banks can suspend bank accounts used againt their terms, they usually just switch a personal account to a business one if they think it is being used for such purposes, and then you'll pay business fees on all your transactions.
Best to set things out right from the start

3. No, although you may have issues selling as an individual; sometimes they may only buy from organisations (such as a limited company) but you will probably know more about that than me.

4. You need to keep everything required for accounting purposes. See an accountant if unsure. Often they are prepared to accept a shoebox full of invoices, receipts etc ... but will charge you handsomely for the privilege.

5. Maybe? Ask if you want to know about something in particular.