Registering business help

[Gav]

Hello all.

Im looking for a guide on what I need to do and how it works.
I am setting up a online only business, well when I say business it is at the same time as my full time job and will have a projected turnover of £7800 in the first year and profit from this of £2100. I know it is hardly a business but I still need to register it don't I ?

I understand I need to change my tax code at work and pay a bit more on National insurance. Also I would need to complete a self assesment tax return form at the end of the year.
On the figures above of £7800 turnover and £2100 what would roughly be payable on tax ? :|

[Williams lester]

There is no need to change your tax code when taking up self employment. You will need to contact HMRC to register as self employed, as your expected profit is under £4825 you can fill in form CF10 - http://www.hmrc.gov.uk/forms/cf10.pdf, which will exempt you from Class 2 NI contributions.

Yes, you will need to complete a self assessment, this will be sent to you automatically sometime after April, once you register as self employed with HMRC.

Your tax bill will depend what your earnings are from your full time job, as to whether you are a standard or higher rate taxpayer and whether this extra income might take you into higher rate etc.

Please feel free to PM me if you need any further advice.

[MyAccountantOnline]

Hello all.

Im looking for a guide on what I need to do and how it works.
I am setting up a online only business, well when I say business it is at the same time as my full time job and will have a projected turnover of £7800 in the first year and profit from this of £2100. I know it is hardly a business but I still need to register it don't I ?

I understand I need to change my tax code at work and pay a bit more on National insurance. Also I would need to complete a self assesment tax return form at the end of the year.
On the figures above of £7800 turnover and £2100 what would roughly be payable on tax ? :|


I think you'd be wise to have a chat with a local accountant - your affairs wont be complex for an accountant and your fees should be fairly minimal.

In the meantime as well as the advice above some good sources of general info can be found at www.hmrc.gov.uk (http://www.hmrc.gov.uk) this may also be helpful -

http://www.hjcca.co.uk/resources/business_zone/business_helpsheets/helpsheet.php?hsType=9

http://www.hjcca.co.uk/resources/tax_zone/tax_helpsheets/helpsheet.php?hsType=6&hsId=1

Assuming you are a basic rate tax payer keep back about 1/5 of your profit for tax, but you'll probably be quite surprised at all of the costs you can claim once if you do speak with an accountant.