Recommendations on Books

[loubycee]

Hi

I have managed to double what I earned as a hobby and made my business pay in terms of the hours I can commit (whilst children are at school)

This is a home business, with a small turnover (due to working 20 hours+ a week) and I don't have to travel far if a client wants to meet, I add mobile phones, equipment and stationery to my expenses, and things like ukbf membership, fees if I choose to find work somewhere like pph and if I ask a skilled writer to do something for me that I feel they can do better thats an expense too.

I'm concerned about a tax threshold - I have a tax figure of 4950 in my head, could be entirely wrong, but is there some kind of threshold when it comes to low self-employment turnover or earnings, and tax?

Thanks, I think I've explained well but tell me if not

[Robert Pearce]

The basic personal allowance is £7,475 for 2011/12 so, assuming that you have no other sources of income, your business can make a taxable profit of £7,475 before you start paying income tax.

The threshold for paying Class 4 National insurance is slightly lower (£7,225 for 2011/12). An exemption from paying Class 2 National Insurance is available if your earnings are below the small earnings exception limit (£5,315 for 2011/12).

This assumes that you are a sole trader.

[loubycee]

Thank you very much that really really helps, its odd to not know those figures as I've always been employed and left that to everyone else!