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General Chat Thread, Tax in General; I'm sure this question will be helpful for some others on this forum too. I'm just wondering if I was ...
  1. #1

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    Tax

    I'm sure this question will be helpful for some others on this forum too.

    I'm just wondering if I was employed full time and earning £25,000 per year, I then decide to start a small business in my spare time fixing pc's or designing websites.

    I understand that you can have £5035 before paying tax, Is my work income and the income from my small business combined? Let's say i make £5000 in my small business, does that mean it's under the paying tax limit or is my work income considered with it which would be £30k total?

    Any more info about this would be very helpful to me as this is something I want to do. Work full time to get a guaranteed income and then start a small business at home to see what i can do with that and have some fun.

    Thanks! :P

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    Re: Tax

    I'm sure you'll need confirmation from more "official" sources than me, but I'm pretty confident your threshold covers ALL incomes. That could include dividends from investments, etc..



    Andy

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    Re: Tax

    Just wondering because since its a business, it could be argued that the income isnt mine. I could pay myself a £1 salary from it and keep the money in the business name.

    This stuff is a bit confusing and its very easy to get slapped with a fine if you make a mistake.

  4. #4

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    Re: Tax

    Quote Originally Posted by rambo_tw
    Just wondering because since its a business, it could be argued that the income isnt mine. I could pay myself a £1 salary from it and keep the money in the business name.

    This stuff is a bit confusing and its very easy to get slapped with a fine if you make a mistake.
    You can only claim that if you are a registered company. As a business all profits are your salary and as such you can be taxed on them.

    I would advise speaking to a financial adviser - or the Inland Revenue.

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    Re: Tax

    This stuff is a bit confusing and its very easy to get slapped with a fine if you make a mistake.
    Don't put it through the 'books' then..... ;-)
    Cash in hand all the way !!
    I won't tell, honest gov...

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    Re: Tax

    Have a look at the recent posts concerning fixing staff/pupil pc's

    Ben

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    Re: Tax

    I believe that you have to fill in a tax return even if your income is under the threshold... it's easy to do online (although it is a PITA registering to do it). The online return will then tell you if you owe any extra money after you fill in your PAYE stuff.



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