Need income tax help/advice! for part-time business

[Thoulder]

Hi!

I've been selling things I make and doing general installation of "stuff" (building up furniture, installing things, basically an on demand handyman ) for the last few months, and recently it's started to snowball and I'm getting many more customers. I was wondering how the money I make from this would impact my income tax - generally it's a few hundred a month, depending on how busy I get. This ******** says I should pay about £1000 in tax from my part time job (which comes out of my salary), and another £600 in tax from the rest of the money I make. How do I pay this? I can't find tons about it online so could use some resources or advice.

Thanks!

EDIT: Thanks for the responses, super helpful!

 

[JohnD]

you inform your tax office. Look at your payslip and there will be a tax reference of some kind. You must tell them when you go into business. Being found out may result in fines.

you tell them your name, address and National Insurance number.

You will have to fill in a tax return at the end of the year, so keep proper records of all your income, but also work-related expenses, such as buying tools, printing business cards.

It may not be worth your while trying to claim for use of your car, but keep records of actual cost of tax, insurance, maintenance, petrol, and of the actual mileage you do on business. I found the "actual" method gave me higher results than the standard mileage allowance, but if yours is cheap to run, the standard allowance may work out better. You can't do both.

The tax office should be able to give you some leaflets or a website. Use the official .gov.uk sites for definitive answers.

Start here
https://www.gov.uk/browse/tax

 

[bernardgreen]

Looks like you will need to complete a self assessment form where you declare all your income.

www.gov.uk/self-assessment-tax-returns/get-help

 

[Diver Fred]

Get yourself Public Liability insurance - That is Tax deductable.
Keep records of all your (part time/handyman) income. Keep copies of the invoices you send out - at the very least get yourself a self-duplication invoice book.
Keep records of all materials you purchase for the jobs you do.
Keep records of all work related expences.
Computer records are usually OK.


Get yourself the services of an accountant. Do that Now and take their advice on what they want see.

They will brief you on what is Tax deductable and what isn't. Their costs will be deductable.
You may only need to see them once a year but they wish to see you more often. Untill you are used to trading don't bother with any of the on-line accountancy systems - just to easy to get it wrong so either under or over paying tax. Once you have signed up with an accountant they 'should' advise the Tax Office they are acting on your behalf.

 

[motorbiking]

keep income, payment, expenses etc in a separate account as it’s a lot easier to tally with your records. tbh you probably don’t need an accountant for a few £100 a month. particularly if you already have a PAYE job.

 

[JohnD]

it's quite a good idea if you can, to get hold of a sample self-assessment form with the pages you'll need for your part time business, and consider if you could fill them in yourself. If you know the information you'll need, and keep good records, it may not be too taxing. I find it quite easy, but I use an accounting package that is no longer on sale, and have relevant training and experience.

If you throw all your receipts away, and write your job records on the backs of old envelopes, you are making the job harder, and any accountant will charge you through the snout to sort it.