Help Needed? I'm making profit what do I do next?

[Magsite]

Hi

Just wanting some advice.

I am employed full time, so is my hubby. My affiliate membership has started giving me an income. What I've done in the past is purely re-invest in adverts, domain names, stationary. So I've not actually used any of the cash for my own personal gain.

I'm just wondering what I should do next so I can make sure its all correct. I'm not in debt with the scheme. I dont plan on going into debt either. I've got no outgoings and simply use my home computer to check up on things.

I've seen how easy it is to set up a ltd business. I also saw something about sole trader. I'm looking for general advice on what I should do next. I'm earning about £600 a month which is increasing the more I reinvest in advertising.

Thanks Lisa

[JoyDivision]

It seems there is little risk so a sole trader may be the best bit. The one thing you must do is inform inland revenue. For this kind of business I don't see much point in being limited as you're not dealing with clients and I can't see you have much financial risk with it.

Just make sure you inform Inland Revenue ASAP.

[RSL]

Sounds almost too good to be true!!! How does it work? You'll need to declare the income on your tax return. In terms of becoming a LTD company it may not be necessary.

Good luck

[clairemackaness]

Hi Lisa,

Can you tell me more about your affiliate scheme?

You seem to be doing well

Claire

[Magsite]

When I inform Inland revenue will they send out a form to complete?

Should I get a business account? Would make life easier account for cash payments and purchases

[Alpha]

Lisa

Irrespective of the fact that you have been reinvesting the money you should be completing a tax return for the (part time) business.

You should be keeping a records of all income and payments in order to complete the tax return.

As you are in full time employment you will at least not have to pay class 2 NI but you may have to pay class 4 NI on any profits.

If you are not sure about completing the tax return yourself you should see an accountant who will be able to advise you not only on current turnover but what you can do in the future.

If you need any help let me know

[RSL]

Probably best! Especially since you'll need to pay tax on your income. So tell us more about it!

[Magsite]

Cheers - Thanks for the replies!

I going to have a quick look at the Inland Revenue Site

[William Wilson]

If you fail to declare you're self employed within specified time of start up they will fine you when you register.

[Magsite]

Am I stll classed as self employed? Even though I'm working?

[clairemackaness]

You will be given a special tax code to let IR know you work as well as have a self generated income.

It sounds to me like you need some business start up advice. Business link offer this for free at www.businesslink.co.uk