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how do i start paying tax / do i need to?
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Hi - around september i started working the odd weekend as a dj for £100 a time - on average i get 3 gigs a month.
they get me to invoice them at the end of the month and pay me £100 per gig and a bit on top for petrol.
I know i need to pay tax (or do i? - first £1k free??) where on earth do i start - do i need my own company? etc
thanks for any help
(i have a full time job through the week with Tesco where they pay tax for me etc)
they get me to invoice them at the end of the month and pay me £100 per gig and a bit on top for petrol.
I know i need to pay tax (or do i? - first £1k free??) where on earth do i start - do i need my own company? etc
thanks for any help
(i have a full time job through the week with Tesco where they pay tax for me etc)
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Replies
You are trading in a self employed capacity so make it as far as paragraph 3 for your answer...
https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income
Currently you are a sole trader and just trading as you this is enough, you could setup a limited company etc but I wouldn't recommend it for you right now.
Past that keep records for income and expenditure for your business and fill out a year tax return with those figures + any other income, this will then tell you if you need to pay any tax.
Of course you can include other costs for equipment etc and claim for mileage to offset your income and pay less tax (if you are due to pay tax).
Quit day job to run 3 businesses 08/02/2017 :j
Started third business 25/06/2016
Son born 13/09/2015:kisses2:
Started a second business 03/08/2013
Officially the owner of my own business since 13/01/2012 :beer:
Sole trader OK, annual tax filing in January online will take you 20 minutes.
Keep in mind that it is the total income earned that counts and not the profits.
Here's the government info:
https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income
Here's a write up:
https://moneysavinganswers.com/personal/tax/new-digital-trading-allowance/