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  • FIRST POST
    • FITLIKE
    • By FITLIKE 4th Jan 20, 10:59 AM
    • 2Posts
    • 0Thanks
    FITLIKE
    how do i start paying tax / do i need to?
    • #1
    • 4th Jan 20, 10:59 AM
    how do i start paying tax / do i need to? 4th Jan 20 at 10:59 AM
    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)
Page 1
    • 00ec25
    • By 00ec25 10th Jan 20, 7:45 PM
    • 8,962 Posts
    • 8,882 Thanks
    00ec25
    • #2
    • 10th Jan 20, 7:45 PM
    • #2
    • 10th Jan 20, 7:45 PM
    Question: (3 x 100) x 12 + "a bit on top for petrol" = more or less than 1,000?

    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
    • lindens
    • By lindens 13th Jan 20, 9:00 AM
    • 2,698 Posts
    • 7,744 Thanks
    lindens
    • #3
    • 13th Jan 20, 9:00 AM
    • #3
    • 13th Jan 20, 9:00 AM
    visit the HMRC webiste and look up self employed, there is lots of stuff to read. you can register as self employed and you will need to start filling in a tax return annually in arrears
    You're not your * could have not of * Debt not dept *
    • Percy1983
    • By Percy1983 15th Jan 20, 8:02 PM
    • 5,001 Posts
    • 7,824 Thanks
    Percy1983
    • #4
    • 15th Jan 20, 8:02 PM
    • #4
    • 15th Jan 20, 8:02 PM
    As above register as self employed and then fill in a yearly tax return.

    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).
    Have my first business premises (+4th business) 01/11/2017
    Quit day job to run 3 businesses 08/02/2017
    Started third business 25/06/2016
    Son born 13/09/2015
    Started a second business 03/08/2013
    Officially the owner of my own business since 13/01/2012
    • MaxiRobriguez
    • By MaxiRobriguez 15th Jan 20, 8:54 PM
    • 788 Posts
    • 647 Thanks
    MaxiRobriguez
    • #5
    • 15th Jan 20, 8:54 PM
    • #5
    • 15th Jan 20, 8:54 PM
    Such a small earnings (no offence) means no need to set up a separate entity at all. It's just not worth it.

    Sole trader OK, annual tax filing in January online will take you 20 minutes.
    • c-m
    • By c-m 22nd Jan 20, 9:56 PM
    • 746 Posts
    • 253 Thanks
    c-m
    • #6
    • 22nd Jan 20, 9:56 PM
    • #6
    • 22nd Jan 20, 9:56 PM
    The trading allowance allows you to earn up to 1000 without declaring it. Any more than 1000 and you have to declare and fill out a tax return. It can be costly to earn more at you'll get taxed on all of it, unless you make an election (effectively telling HMRC that you want to use the trading allowance).

    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/
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