Hey, please excuse my possible stupidity but i've just had my first order for photos to be sold on and i don't know what I need to do about tax and stuff! the government website just confused me and i don't know what to do! i don't want to end up doing anything wrong but i don't know what is right! i work full time so i'm registered to pay National insurance through that so i don't think that this counts as self employed, more like a part time extra 'thing'!
sorry for rambling, if anyone can help it would be much appreciated!
it does count as self employment. You legally should register, You need to fill out CWF1 - online, and then they will send some docs to you. If you expect to raise less that £4825 per year you can become exempt from paying class 2 NI contribution (which is lucky as that is about £5 a month ish).
It is a minefield. I've just done it in the last year,
thanks for the advice, its so confusing! they only seem to have options for employed OR self-employed, confusing if you're trying to do both! thanks for the help
As Keltic said you should register now but you should give the tax help line a call first. Thats what I did and they took some details and basically said to give them a call back after my first paid job. I found them very helpful and they were quite patient in answering what I suspect were very obvious questions.
Filling out and sending the NI exemption form is a must although a pain. This needs to be re-done every 2 years I think.
I just got the form through this year, didn't get one last year only the year I started? They may have changed the rules and subsequent timescales of course? Irritating if they have
Hi
If you are earning an income from togging then you should complete CWF1 as previously mentioned. You should register within 6 month of starting the business otherwise you could be hit with a penalty. The CWF1 will start to ball rolling and you will start to receive Tax returns to complete. NI due will depend on your turnover/profit. There something called the small earnings exemption. You should also check with the VAT as if your 'turnover' is expected to exceed a certain limit then you may be required to charge VAT. Check this limit with VAT to see if you come into this. You will obviously need to keep records of income and out goings. Get a note book list all income in the front and from the middle of the note book list all outgoings. From this basic profit and loss accounts can be produced. You don't need a PAYE scheme until you start employing people. I would suggest that if you are going to continue the togging business regularly and you make a reasonable profit get in touch with a half way decent accountant. Lastly don't forget to put some money aside to pay your tax bill. If you continue to be employed and all your tax free allowance are used against your salary then any 'profit' from the togging business will be charge at at least 20%. I wouldn't phone the call centre but instead if you can get there make an appointment at your local tax office and get advice, ask, answer questions face to face
im not good with stuff like this my self, so if your in full time work and you have a hobby taking photos but people tend to buy them of you time to time, you have to set up tax and all that stuff? or have i got the wrong end of the stick?
thanks for all the responses, i think ringing the helpline is sounding like good advice, then i can ask all the dumb questions i need to! thanks for all who responded, was just worried as this first job was moving so quick i didn't know if i needed to register and stuff before it or if i can just keep the documents and register when things calm down after it
Strictly speaking yes but it depends on the profit you make not the turnover. IE You'd claim all your 'business' expenses against the income to determine the profit. In my experience if you sold £50 - £100 of prints each year the tax man wouldn't want to know as there would be almost no profit once you take into account cost of materials and capital allowances on the business aspect of your kit.
I was at a business start up awareness seminar yesterday morning.
If you're starting up on your own, you don't need to register with Companies House as a Limited Company, you can start as a Sole Trader. You only need to call HMRC and register with them, you can do this up to 3 months from the date you started trading, without penalty.
If you're in fulltime employment, you don't need to pay NI as you will be paying fully through your employer I believe.
You will be taxed on the profit your business makes, you will have to declare this on your self assesment form at the end of the tax year. I think if you're making less than £56K a year this involves 3 lines on the form, income, expenditure and profit!
It would be advisable to get public liability insurance and make sure you keep a note of mileage and every receipt for business expenses, a basic income/outgoing book would be beneficial.
Hi
Not strictly true as it depends on whether or not you are paying the maximum in your employment and if your profit is high enough you may be charged Class IV NI
Hi
Not strictly true as it depends on whether or not you are paying the maximum in your employment and if your profit is high enough you may be charged Class IV NI
I had a conversation about this with the guy taking the seminar, but i was discussing my circumstances, he did say that in some circumstances you would have to make NI contributions.
Too much information to process in a 2 hour session
Speaking as someone who has been self-employed for more than 20 years, the one bit of advice I can give you is......................get an accountant (or at least someone who knows what they are doing) to do your books/help you out.
There has already been conflicting advice in this thread.
If anyone wants advice on this sort of thing drop me a PT as I and my wife are qualified accountants and have been running our own business for small businesses for over 15 years. We cater for all sizes from one man start up businesses upto those with a turnover of £5m plus.
I can offer free advice and even help with the form filling etc throughout the year.
If anyone wants advice on this sort of thing drop me a PT as I and my wife are qualified accountants and have been running our own business for small businesses for over 15 years. We cater for all sizes from one man start up businesses upto those with a turnover of £5m plus.
I can offer free advice and even help with the form filling etc throughout the year.
If anyone wants advice on this sort of thing drop me a PT as I and my wife are qualified accountants and have been running our own business for small businesses for over 15 years. We cater for all sizes from one man start up businesses upto those with a turnover of £5m plus.
I can offer free advice and even help with the form filling etc throughout the year.
The best course of action is talk to an accountant. They'll tell you what you position is regarding tax etc. In my experience a good accountant saves you more than their fees
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