Paying tax

FrankR

Hello

My son has been selling items online since around late May 2019.

He is a student and isn't employed. He is self-employed, I think.

We literally have no idea what to do to pay tax on his earnings.

Should he set up his own company or self report? If so, when does he have to do it?

Literally no idea where to go or what to do. He wants to pay tax for his pension on retirement.
How does he do this?

molerat

https://www.gov.uk/working-for-yourself

https://www.gov.uk/log-in-file-self-assessment-tax-return/register-if-youre-self-employed

00ec25

is he buying stuff in order to sell it? If yes, then he is trading and needs a crash course in how to work out costs and profits, and how to report them on a tax return - if applicable.
Whether he has a profit level that will incur tax depends on his figures....

leaving aside the profit calculation for a moment, has he actually sold more than £1,000 anyway?

he needs to do a lot of reading:
https://www.gov.uk/topic/business-tax/self-employed

https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income

as he is a "youth" and so presumably struggles with the task of reading lots of writing, he may prefer to watch videos instead. HMRC run a whole series of webinars as well to cater for such eventualities:
https://www.gov.uk/guidance/help-and-support-if-youre-self-employed

https://www.gov.uk/guidance/help-and-support-for-self-assessment