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Starting out in business

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By (user no longer on site) OP   
over a year ago

Ok so I'm in full time employment and I'm looking to start off building a small side business. Furniture painting/shabby chic/general selling. That kind of thing. But only as an online shop.

Once registered do you get a tax free earning limit?

I've been looking into website designs and Facebook Tonight and have gotten into bed without trawling the HMRC site to look things up.

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By (user no longer on site)
over a year ago


"Ok so I'm in full time employment and I'm looking to start off building a small side business. Furniture painting/shabby chic/general selling. That kind of thing. But only as an online shop.

Once registered do you get a tax free earning limit?

I've been looking into website designs and Facebook Tonight and have gotten into bed without trawling the HMRC site to look things up."

I think it depends...

Do you mean registered as a sole trader? If so I believe it is still part of your basic tax relief allowance.

A limited is a completely different game with a different set of rules.

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By (user no longer on site) OP   
over a year ago


"Ok so I'm in full time employment and I'm looking to start off building a small side business. Furniture painting/shabby chic/general selling. That kind of thing. But only as an online shop.

Once registered do you get a tax free earning limit?

I've been looking into website designs and Facebook Tonight and have gotten into bed without trawling the HMRC site to look things up.

I think it depends...

Do you mean registered as a sole trader? If so I believe it is still part of your basic tax relief allowance.

A limited is a completely different game with a different set of rules."

Yeah sole trader, one man band, lone wolf...you get the idea, even though my mum helps me out I can't sew so she does it.

My understanding is you don't pay tax on the first £10k you earn, so my full time job cancels that out straight away, I'm just after knowing if a second income gets a tax free earning limit for a sole trader.

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By *ohnjones3210Man
over a year ago

Chester

You don't get any additional benefits no.

Basically, get your full time wage, add it to your turnover of your business, take away expenses, take away the personal allowance and that is your taxable income.

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By (user no longer on site) OP   
over a year ago


"You don't get any additional benefits no.

Basically, get your full time wage, add it to your turnover of your business, take away expenses, take away the personal allowance and that is your taxable income."

So basically anything I'd earn through the second income is fully taxable? Minus the cost of supplies etc

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By (user no longer on site)
over a year ago


"You don't get any additional benefits no.

Basically, get your full time wage, add it to your turnover of your business, take away expenses, take away the personal allowance and that is your taxable income.

So basically anything I'd earn through the second income is fully taxable? Minus the cost of supplies etc "

Pretty much.

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By (user no longer on site)
over a year ago

Are you looking to set up as a sole trader, so basically self-employed, if so then you would get the basic tax allowance as normal and pay national insurance through class 4, so pay the hmrc directly, and fill in a tax return each year to work out any tax and further ni owed. You need to register with the hmrc to do this.

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By (user no longer on site)
over a year ago


"Are you looking to set up as a sole trader, so basically self-employed, if so then you would get the basic tax allowance as normal and pay national insurance through class 4, so pay the hmrc directly, and fill in a tax return each year to work out any tax and further ni owed. You need to register with the hmrc to do this.

"

Ah just seen it would be a second job so the tax allowance wouldn't apply. But all said above by others is how it works

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By *adystephanieTV/TS
over a year ago

glos

If your staying employed you should not register as self employed just declare additional earnings on your personal self assessment initially this will save you a lot of money, if the business takes off go limited as opposed to sole trader as you don't pay class 4 plus your tax....lot more complex really but that's the basics

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By (user no longer on site)
over a year ago


"You don't get any additional benefits no.

Basically, get your full time wage, add it to your turnover of your business, take away expenses, take away the personal allowance and that is your taxable income.

So basically anything I'd earn through the second income is fully taxable? Minus the cost of supplies etc "

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By *hortieWoman
over a year ago

Northampton

Pop into your local tax office and ask them

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By (user no longer on site)
over a year ago


"Ok so I'm in full time employment and I'm looking to start off building a small side business. Furniture painting/shabby chic/general selling. That kind of thing. But only as an online shop.

Once registered do you get a tax free earning limit?

I've been looking into website designs and Facebook Tonight and have gotten into bed without trawling the HMRC site to look things up."

If your only starting a business on the side I'd cut your costs right down and have a Facebook page. The costs of running a domain on Google for a sole trader is a nightmare. Your looking at £200/£300 a month to keep your page on the first page of Google.

Good luck tho

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By (user no longer on site) OP   
over a year ago


"Ok so I'm in full time employment and I'm looking to start off building a small side business. Furniture painting/shabby chic/general selling. That kind of thing. But only as an online shop.

Once registered do you get a tax free earning limit?

I've been looking into website designs and Facebook Tonight and have gotten into bed without trawling the HMRC site to look things up.

If your only starting a business on the side I'd cut your costs right down and have a Facebook page. The costs of running a domain on Google for a sole trader is a nightmare. Your looking at £200/£300 a month to keep your page on the first page of Google.

Good luck tho "

This is exactly what I'll be doing, FB, esty, eBay. Think I'll even use Instagram to share and promote...and I hate Instagram!

The whole idea is to keep my costs as low as possible, so I can pass that on to the customer. Being a second income I can already do things a whole lot cheaper than most people, but I'm not going to be massively under cutting and undervaluing my work.

Once I've got feedback/reviews and an established FB page etc I'll be applying to be a stockist of a certain brand of paint, since there's only one in the uk currently.

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By (user no longer on site)
over a year ago

You may want to look into incorporating a company. It doesn't cost much to keep it going, just the annual return and accounts filing fees. The benefit, however, is that if you expect to be making a reasonable sum (doesn't have to be big), you can pay a majority of it to yourself as a dividend which has tax benefits as opposed to paying income tax on the full amount. More importantly, if you're taking on any liabilities, i.e. Bank loan or even just invoices from suppliers and you end up in a position where you are unable to pay them, the company is a separate legal entity and so your personal assets will be protected. If someone ends up suing, the have to sue the company, not you personall. As a sole trader, there is no differentiation between assets of the business and your personal assets.

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By *olgateMan
over a year ago

on the road to nowhere in particular

Once your turnover goes over X amount, you will need to register for vat

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By *heBirminghamWeekendMan
over a year ago

here

Keep things simple to start, so you are spending your time on actually making the product and the profit.

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