Internet earnings and Personal Tax-Free Allowance

athlete_2

I’m thinking of starting an online shop with Zlio:

http://www.zlio.co.uk/

Seeing as my annual earnings would probably be below the Personal Tax-Free Allowance of £5435. Should I bother to register as self-employed with HM Revenue & Customs and fill a tax self assessment form?

I’m on Income Support, and to so so would jeopardize my benefits for what amounts to pocket money earnings from Zlio.

joeblack066

In short, yes, you are breaking the law if you don't, and you will have to declare it to the DSS as well or you would fall into the "NO if's, no but's" category.

athlete_2

I thought so.

PasturesNew

athlete wrote: »

I’m thinking of starting an online shop with Zlio:



Seeing as my annual earnings would probably be below the Personal Tax-Free Allowance of £5435. Should I bother to register as self-employed with HM Revenue & Customs and fill a tax self assessment form?

I’m on Income Support, and to so so would jeopardize my benefits for what amounts to pocket money earnings from Zlio.

Your personal tax free allowance is just over £6k (because of the 10p fiasco).

Yes you should register.

Being on income support should not prevent you from doing this. Forget the fact that for now you'd be losing IS because of your earnings. See IS as topping up your online earnings, rather than seeing it as something you're losing.

By creating yourself an online shop you will gain knowledge, skills and experience that might help you in the future in any job-seeking. And what if you hit a niche that out-performs your IS? Then you could simply drop the IS completely and be fully self-employed from those earnings... even if it takes you 3-5 years or more to achieve that level of income!

It will be fun and you'll gain new friends and confidence. When you meet people you won't have to mention your IS when they ask you what you do, simply say "I run an online shop, I get by".

Go for it! But do it legally.

Good luck!