Voluntary Self Assessment - tax confusion!!

GadgetGuru

Hi all
I wonder if someone can please enlighten me......

I am full time employed, for which I of course pay income tax via my standard tax code every month as normal. 

In Nov every year I get an unpaid tax bill for savings interest, which I then pay online. They did try to change my tax code to reflect this but I have had them set my interest projection to 0 so my tax code is back to normal as I prefer getting a separate tax bill for interest that I can pay yearly. 

This is all fine. 

I'm now making a little monthly via my YouTube videos where I review tech items, just as a hobby more then anything else. Its not a business or side hustle, but on average it's around £250-300 a month earnt. I estimate I will exceed the £2500 limit in the year 25/26. I therefore need to declare this - I assume via self assessment?

My queries:

1. If I stick to tax years and register for self assessment in April 2025, when do I complete my first actual self assessment - is it in April 2026?

2. Can I add expenses to a self assessment? If so, what happens if my expenses exceed the amount I have made from YouTube in the year? For example, if I make £3500 from YouTube revenue, and I have purchased a new computer and monitor for £5k as well as the tech stuff that I review? I assume I would have no tax to pay in such an instance?

3. When I do a self assessment do I mention my salary (which is already automatically taxed anyways) and savings interest (for which HMRC send me an unpaid tax bill already) - or can I not mention these and leave them to run as separate entities as they are at the moment?

I'm trying to do the right thing but I get very confused when it comes to anything tax related, as you can see! Hence I try to separate parts as much as I can!

Thanking you in advance.

FlorayG

You need to report any self employed income in the April after - so if you register in April 2025 you then do a tax return for April 2024 to end of March 2025. Its a part year but they will take that into account.
One you start doing self assessment forms yearly everything goes on that one form - details from your P60 that you get in April and details of savings interest. You get a tax bill and probably a new tax code for your employer. Don't do the self assessment forms until you get your P60 because you can't submit them without that information
You put down your capital costs and depreciation on the self assessment form and that is also taken into account - in my first year I paid only £68 tax because of this and it being a part year but now I pay ...ahem...loads more. As long as these costs are reasonable they usually won't question them but just in case they do obviously you need to keep ALL of your receipts!

Nomunnofun1

GadgetGuru said:

Hi all
I wonder if someone can please enlighten me......

I am full time employed, for which I of course pay income tax via my standard tax code every month as normal. 

In Nov every year I get an unpaid tax bill for savings interest, which I then pay online. They did try to change my tax code to reflect this but I have had them set my interest projection to 0 so my tax code is back to normal as I prefer getting a separate tax bill for interest that I can pay yearly. 

This is all fine. 

I'm now making a little monthly via my YouTube videos where I review tech items, just as a hobby more then anything else. Its not a business or side hustle, but on average it's around £250-300 a month earnt. I estimate I will exceed the £2500 limit in the year 25/26. I therefore need to declare this - I assume via self assessment?

My queries:

1. If I stick to tax years and register for self assessment in April 2025, when do I complete my first actual self assessment - is it in April 2026?

2. Can I add expenses to a self assessment? If so, what happens if my expenses exceed the amount I have made from YouTube in the year? For example, if I make £3500 from YouTube revenue, and I have purchased a new computer and monitor for £5k as well as the tech stuff that I review? I assume I would have no tax to pay in such an instance?

3. When I do a self assessment do I mention my salary (which is already automatically taxed anyways) and savings interest (for which HMRC send me an unpaid tax bill already) - or can I not mention these and leave them to run as separate entities as they are at the moment?

I'm trying to do the right thing but I get very confused when it comes to anything tax related, as you can see! Hence I try to separate parts as much as I can!

Thanking you in advance.

The £2500 limit - where have you discovered this? The limit is actually £1000.

https://www.gov.uk/become-sole-trader/register-sole-trader

You need to declare ALL income and savings on a self-assessment return. You need to register by 5th October 2025. Your first return will be for 2024/25 which must be filed by 31st January 2026.

You now have no option but to ‘stick to tax years’. 

Are you able to justify that a computer costing £5000, with a self-employed turnover of £2500,  has no personal use whatsoever? 

If so, you have a loss. If you choose to use the cash basis this can be carried forward against future profits only. 

Given the questions, particularly on whether you ‘should mention’ your salary on your tax return, I would seek professional advice - may save you a lot of problems in the long run. 

TheSpectator

And get an accountant as you have no idea on capital expenditure - you are not purchasing theae items solely to review them what makes you think you can claim 100% business cost?

GadgetGuru

The computer is to edit videos - I have my own MacBook for personal use. 

Dazed_and_C0nfused

@GadgetGuru everything you have posted so far points to you needing to complete a Self Assessment return for the current tax year.  

If you register now you will be sent a return or notice to file a return for 2024-25 after 5 April and have until 31 January 2026 to file it and pay any liability due.

As others have said you need to include all taxable income on a tax return, you don't pick and choose what to include.

For tax years you are completing Self Assessment returns you should no longer get P800 calculations from HMRC, everything who'll be dealt with via your return.

Given the scale of your apparent expenses professional advice may be prudent.

Bookworm105

what happens to the tech items you have "purchased to review"?

if you keep them for personal use than you cannot claim all their cost
if you sell them afterwards then you have an income to offset the cost

you do have a "side hustle", it is called self employment. Given your start point professional guidance is advised.