tax and small business

[striving-young]

I am thinking of making some extra money by dropshipping on ebay, I live with someone who pays full council tax etc. and is legit, I work part time though don't pay rent. What is troubling me is the complication of tax, is it really worth the hassle?

I will most likely even if I do make some money not pass the threshhold plus if I register with hmrc what complications does this bring upon the person who I am living with? I was thinking of not stating my business intentions until I pass the threshold or am fairly profitable under the threshold, though any advice would be appreciated.

I can't afford an accountant.

 

[Scalloway]

Registering with HMRC shouldn't in itself cause problems. However you should seek the permission of the landlord to run a business from the house and the insurerer should also be informed.

 

[striving-young]

Registering with HMRC shouldn't in itself cause problems. However you should seek the permission of the landlord to run a business from the house and the insurerer should also be informed.

Thank you for replying.

What insurer is this you are talking about as he does not have home insurance?

He would allow permission though needs to really know if it will change his tax situation though he pays full tax and works full time.

 

[Scalloway]

If there is no insurance on the house or contents there is nobody to inform. Unless the business is paying the person whose house it is there is no tax consequences for them.

 

[striving-young]

Thank you that's a load off my head, how often should I update my situation with hmrc?

Is there anything else I should look out for while doing tax?

 

[Scalloway]

You should register as self employed with HMRC as soon as you start making sales.

http://www.hmrc.gov.uk/selfemployed/register-selfemp.htm

They will send you a tax return shortly after 5 April each year which you need to complete and return by 31 January the following year.