Newbie

[mronline]

Hey guys,

i am a newbie. I have set up a website that is making money now only about £500 a month but I have no idea if I have to register as a sole trader or if I have to set up a limited company.

My website is like an affiliate website so I make money by referring people to other websites.

I have no idea about taxes either?? I am doing a full time "real job" where i am paying taxes, but my salary from that is only about £18k

Do I have to pay taxes for the website? Does this mean that my income is already £18k because I have the "real job" or do I get a tax free threshold because the website is seperate to my real job?

Also can i just spend any of the income? I don't really have any outgoings, well maybe £100 a month?

Can I give myself "Wages" or a "salary"?

I'm completely new to this so if there's like a guide or a video or a course or something that explains all this then I would be grateful if you could point me in the right direction.

Sorry if these questions seem really stupid!

 

[Kev2017]

You need to at least set up as a sole trader (for tax purposes). The link to do this is below:

https://www.gov.uk/set-up-sole-trader

I would speak to an accountant about paying yourself. You will need to fill in a Self assessment tax return. Check out the HMRC website, there is plenty of info on there.

Hope this helps.

 

[ethical PR]

You have to pax tax on your earnings whether through employment or self employment.

Information about this is on the HMRC website as well as the useful guide Kev directed you too so go over and have a look.

1. Register as self employed
2. Keep a note of all income and expenditure related to your self employed business on a spreadsheet and all your receipts for expenditure
3. Account for both your earned and self employed earnings on your tax return - you will be taxed on the total.
4. You can spend what you earn from your self employed income as long as you set aside money from your earnings for your tax, expenses etc.

 

[ADNattan]

Do I have to pay taxes for the website? Does this mean that my income is already £18k because I have the "real job" or do I get a tax free threshold because the website is seperate to my real job?

All of the money you make from all the jobs you do are basically "pooled" for tax purposes, so your tax-free threshold is "used up" by your salary.

As other folks have said, you can't go wrong if you get a decent accountant.

 

[TomJ83]

Hi @mronline

If you feel that accounting is difficult, then you should find a good accountant. There is a good offer here on the marketplace that you could look at.

http://www.ukbusinessforums.co.uk/threads/special-accounting-offer-for-start-ups.376259/

 

[bgnovuc]

Sole trader - it's just you;
LTD: more than one
Inc - share issuing...