A guide to tax (in britain)

Discussion in 'Legal Issues' started by Notting, Feb 16, 2006.

  1. #1
    Having got to the point where my website is turning over £500/600 a week i thought I should probably contact the taxman. I'm in the process of registering as self employed myself so I thought I would make a quick guide to the process of registering.

    1. You should register within three months of starting working for yourself. (i thought there was some ambiguity in this because you can argue that you were doing it as a hobby (or something) until you start making money. (£100 for registering late)

    2. Download form from http://www.hmrc.gov.uk/forms/cwf1.pdf

    Fill out the form - it is very quick to do and very simple (as far as gov forms go!)

    a) I decided not to use my website as the name of the business - this allows you to increase the breadth of your business.
    b) If you make profit of less than £4345 you may not have to pay NI. more info http://www.direct.gov.uk/MoneyTaxAn...Articles/fs/en?CONTENT_ID=10014924&chk=Jk4pR8
    and

    For sole traders you should keep accounts ie receipts for eveything that you use for your business - inc all those things that you might forget inc fuel, petrol, phone, books or whatever.

    3. Send the form off and that's it till April when you will have to do a self assesment

    Easy!

    gl all
    ~Notting
     
    Notting, Feb 16, 2006 IP
  2. Notting

    Notting Notable Member

    Messages:
    3,210
    Likes Received:
    335
    Best Answers:
    0
    Trophy Points:
    280
    #2
    Error....more forms than i thought, they keep sending you more!
     
    Notting, Mar 3, 2006 IP
  3. xlguy

    xlguy Well-Known Member

    Messages:
    213
    Likes Received:
    7
    Best Answers:
    0
    Trophy Points:
    110
    #3
    Lol, tell me about it. We operate as a Ltd. company and the amount of paperwork makes your head spin. It's almost as if they don't want Brits to become entrepreneurs ;)
     
    xlguy, Mar 3, 2006 IP
  4. Notting

    Notting Notable Member

    Messages:
    3,210
    Likes Received:
    335
    Best Answers:
    0
    Trophy Points:
    280
    #4
    Well im not yet at the stage where i would need to consider going LTD (though hopefully that time is not in the too distant future!), but i have heard it gets quite a lot more difficult when you get to that stage.

    I know what you mean about the entrepreur thing. Luckily at my university (Nottingham) we have very good support for this sort of thing with free access to lawyers, accountants, marketing specialist etc. Its a real opportunity actually.

    GL
    Jamie
     
    Notting, Mar 7, 2006 IP