Full time job and Oline Business

kingrulzuk

Hiya all

Im working full time and im 26k a year and my tax code is 1060L

Now i want to start a online business and ant to get all the info before i start.

As i got told by someone that when i start earning online that for first 10000k i dont have to pay tax? and anything above that i have to?

Any more info will be good

Thank you

Undervalued

kingrulzuk wrote: »

As i got told by someone that when i start earning online that for first 10000k i dont have to pay tax? and anything above that i have to?

No!

That figure would be true if you had no other income (i.e. it is the single person's tax allowance). Currently the first £10000 of your salary is tax free, you pay tax on the rest. Therefore any profits you make with your part time business will be taxable.

Pennywise

Tax allowances and rates are cumulative, i.e. the first £10k of all your income is tax free, not £10k from each source.

NB this is different to NIC which is worked on a "per job" basis, so you have your lower NIC threshold/allowance for each work/job that you have.

PasturesNew

As the above said, as you're already earning £10k (which could come from any income source), you'll be paying tax on all your income online from the first £1. (Where income = turnover-expenses)

kingrulzuk

Ok now i understand

Thank you all