Earnings before tax?

Kate2009 · May 26, 2009

I wonder if someone could help me with some advise.

I am thinking about starting a bussiness, currently work part time but am thinking about renting a holiday flat out.

How much can i earn before i have to pay tax?
How would I go about registering as a bussiness?
Does the tax I earn on my current job and the holiday flat join together?

I would be really gratefull of some advise.

Kind Regards,

Kate

MyAccountantOnline · May 27, 2009

Kate2009 said:
How much can i earn before i have to pay tax?
Kate

£6,475 - I have the allowances on my website if its of help -

http://www.hjcca.co.uk/resources/tax_zone/tax_rates_and_allowances/tax_rates.php?r=7

Kate2009 said:
I
How would I go about registering as a bussiness?
Kate

You have to notify HM Revenue & Customs - have a look here -

http://www.hmrc.gov.uk/selfemployed/iwtregister-as-self-employed.htm

Kate2009 said:
Does the tax I earn on my current job and the holiday flat join together?

Effectively yes - an accountant can easily deal with this for you, including registering you as self employed. Its not a huge amount of work and wouldnt/shouldnt be very expensive.

Kate2009 · May 27, 2009

Thanks for your reply Nic.
At the minute im trying to handle the books myself, ive done basic accounting etc and we would be (at estimate) be earning less than the current minimum...I.E under 4250.00 PA.
What would I need to do to make it above board? Bearing in mind I wouldn't need to pay tax, and am not overly interested in going down the capital gains route.

Advise much appreciated.
Kate

MyAccountantOnline · May 27, 2009

Kate2009 said:
Thanks for your reply Nic.
At the minute im trying to handle the books myself, ive done basic accounting etc and we would be (at estimate) be earning less than the current minimum...I.E under 4250.00 PA.
What would I need to do to make it above board? Bearing in mind I wouldn't need to pay tax, and am not overly interested in going down the capital gains route.

Advise much appreciated.
Kate

Hi Kate

If you want to have a go at dealing with everything yourself first of all you must register as self employed using the previous link, then just do your best using the guidance and info on HMRC's website.

Not quite sure what you mean about 'capital gains route':|

Good luck!

MyAccountantOnline · May 27, 2009

Dont forget when calculating the tax due you must bear in mind your earnings as an employee may well use up all/some of your tax free ie personal allowance so your self employed earnings may give rise to a tax liability.

Kate2009 · May 27, 2009

Nicola HJ said:
Dont forget when calculating the tax due you must bear in mind your earnings as an employee may well use up all/some of your tax free ie personal allowance so your self employed earnings may give rise to a tax liability.

Sorry Nic - bit confused by that last comment?

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