HELP!! I want to set up a small business whilst working full time....

Bambi0895

Hi,

not sure whether this is the right board but here goes!

I currently work full time, and earn around £14,000 a year.

I want to set up my own small business, selling costume jewellery mainly.

I have been trying to read up on tax/customs info etc, to make sure ii do everything by the book.

I'm totally confused. Obviously, as it stands, i pay tax and national insurance on my wage.

What happens when i start earning from my own business? Do i pay tax on that?! If so, how much, and how do i actually go about it?!

Also, i plan to buy some stock in SMALL quantities to sell on over here,This will probably come mainly from China, some stuff from the UK. i dont plan on holding much stock at once,i'm not expecting to make thousands, it's more of a 'we need to save up for a bathroom but we still want nice things' pocket money sort of fund.

Do i have to notify customs, register anywhere? Etc.

Like i say i am totally new to this and would be very grateful of your advice, as i really dont fancy a massive unexpected tax bill or nasty calls from customs!!

Thanks,

Lauren

paddyrg

What happens when i start earning from my own business? Do i pay tax on that?! If so, how much, and how do i actually go about it?!

Do i have to notify customs, register anywhere? Etc.

Register with HMRC as self employed, you'll have to do a tax return each year for your self employed income, and you can pay what you owe by debut card/transfer.

No need to notify customs, but any packages may be liable for duty, VAT and any courier handling charges (£8 for royal mail, others may change a percentage but have higher overall courtier fees).

Bambi0895

Thank you Paddyrg,

How will i know whether my packages are liable for Duty VAT etc?

Also, when i do the self assessment do i only mention what i earn self employed, and ignore my other wage?

Suarez

No you asses your income from all sources. For your employment you will put your salary from your P60 and tax paid

Bambi0895

Hi,

right i see.

So i need to do a self assessment, and keep 20% of all sales aside for tax?

I have read that i wont have to pay tax on imports below £15. But may incur customs charges, it seems to be a bit hit and miss.

paddyrg

Import charges, bit of a lottery as some packages especially from China underdeclare the contents value, but will get stopped anyway, others pass through without attention, but it's worth assuming you'll pay VAT and duty plus handling on every package and treat it as a bonus if you get through. The odd low value package is unlikely to be stopped, but if you consistently have loads all together it may raise an eyebrow.

zygurat789

Bambi0895 wrote: »

Hi,

right i see.

So i need to do a self assessment, and keep 20% of all sales aside for tax?

I have read that i wont have to pay tax on imports below £15. But may incur customs charges, it seems to be a bit hit and miss.

No harm in this but you will only be taxed at 20% on profits.
You would probably benefit from claiming small income (5885 this year) exemption from class 2 NI.