Working online - tax advice

SarahLu

Hi all,


I am new to this forum as I've recently had my full time hours reduced and have decided to dedicate my new time to trying to earn money online. I have loads of ideas I'm going to try, many from reading this forum, so thanks guys.


I intend to register as self-employed shortly and I have done a search of the forum but there is so much info coming up and I really don't know where to start picking through it.


My 2 main questions are:


1. Is there a simple guide to setting up as self employed and how to calculate what tax you might owe by the end of the year? I understand you would have to put money aside in advance of receiving the bill but I have no idea what kind of money I might earn yet. I've read the info on the official gov.uk website but I need ore of a step by step guide with tips etc., if such a thing exists!


2. Concerning ideas on this income boosting income forum, is there a simple guide to what you have to declare for tax reasons and what you don't? Also any tips on how you online money makers keep records of your earnings?


Thanks in advance, and sorry if this info is already on the forum elsewhere - if someone could point me in the right direction that would be great.

asajj

http://forums.moneysavingexpert.com/forumdisplay.php?f=22

https://forums.moneysavingexpert.com/discussion/4896060

Try these

System

Cutting tax isn't really relevant to what you are asking so I'll give you advice based on what I do.

1. You can register online with HMRC to be self-employed as a sole trader and it is quite straight forward. They'll send you paperwork with a Unique taxpayer reference and that is what you need for the future.

You only need to pay tax if you earn more than the current tax threshold (I believe it will be either £10,500 or £10,600 for 2015/6). A general rule of thumb would be to save 25% of what you earn for any relevant tax or national insurance.

You can use the listentotaxman website to calculate what you'd need to pay on X amount per year just to get an idea.

Any money that comes in, or vouchers, or goods paid in kind (e.g if you get a free vacuum worth £299 you'd put down £299 on your spreadsheet) needs to be declared.

Some people here would say you don't need to declare it, or HMRC are unlikely to check, those people would be those that either avoid tax declarations themselves, fiddle the system or don't actually earn any money so don't know what they should be doing.

I just use a simple spreadsheet on Libre Office (It is free to download) and that is good enough for me.

I've declared my tax return today, it was very simple.

If you've anymore questions and want to speak to me specifically you can PM me and I'll happily reply. I don't spend much time here at the moment so wouldn't want to miss any replies from you. Take care.

SarahLu

That is extremely helpful info Katykicker, thanks so much.


I am currently still in the process of researching and educating myself about all this stuff, so will definitely check out the website and spread sheet you have mentioned!

asajj

Cutting tax forum is not only about the "cutting tax" though Katy

Good luck Sarah