Employed and Self employed at the same time

dagnyjuel

Hello, I am thinking about opening my own online business - selling on ebay and via my own website. This would be my second job, as I am employed on a full time basis. When it comes to income tax - would I be paying taxes on the combined income? With ebay selling - when do I need to start paying taxes on what I've sold? Many thanks for any help!

tattycath

I work for a company and for myself. i Pay tax on my full time job and fill in a tax return for my self employed job, my book keeper works out what extra tax I have to pay and I pay it online.

booksurr

obviously you pay tax on your total income for the year, so yes you add your e bay profit to your employment earnings to find out what that total is. You don't say what your gross employment income is, so you may or may not tip over to the higher rate income tax on anything over £43,000 total

the slightly fiddly bit is if you start the e bay business now in 16/17 you will have to declare your profits to HMRC (ie income - costs) as self employed and therefore will need to complete a tax return


however, from 6 April 2017 there is a new tax band specially aimed at e bay traders which exempts the first £1,000 of income from tax if it was earned through e bay selling. Whether you will be earning more than that by then remains to be seen, as does what HMRC will do with people who were previously on tax returns but then fall outside as their income is below £1,000. Presumably if above you will still be required to self assess

[Deleted User]

tattycath wrote: »

I work for a company and for myself. i Pay tax on my full time job and fill in a tax return for my self employed job, my book keeper works out what extra tax I have to pay and I pay it online.

It goes without saying that your company income is also included in your tax return.

tattycath

[Deleted User] wrote:

It goes without saying that your company income is also included in your tax return.

It does indeed.

Spidernick

booksurr wrote: »

However, from 6 April 2017 there is a new tax band specially aimed at e bay traders which exempts the first £1,000 of income from tax if it was earned through e bay selling. Whether you will be earning more than that by then remains to be seen, as does what HMRC will do with people who were previously on tax returns but then fall outside as their income is below £1,000. Presumably if above you will still be required to self assess

That's a little misleading, as it implies that it's only eBay profits that are exempt, which isn't the case from my understanding. This was discussed at a recent tax update session at work and, although eBay will form a big part of this exemption, it is far from being the only one.

booksurr

Spidernick wrote: »

That's a little misleading, .

the question asked was in the context of ebay, therefore it is not misleading since the answer clearly relates to that context

the issue can be explained again in other contexts as relevant to other questions