Question by faztboz: Self Employed or Registered Business,please help.Need to start an online Business while still working fulltime?
I am planning to start an online Business and mainly trading on auction sites. I currently have a full time job in the UK. What are the tax implications? How do I go about starting my business? Would it be advisable to register myself as self employed? Or do I need to get a Business name and register it? What are the VAT/Tax implications in either case?
Would greatly appreciate your help.
Answer by Neil M
You have to register with HMRC within 3 months start of your self employement. Otherwise you get a penalty of £100.00.
If you have any chageable income inthe year you have to inform HMRC 6 months after tax year i.e. for 2008-2009 you have inform them that you have a chargeable income by 6 Oct-09.
As a self employed you pay Class 2 Nic as weekly amount of £2.30 (for 2008-2009) and class 4 on your profit 8%.
You do not need to register for until your turnover breached the threshold of £67,000. However you may register voluntarily but it involves admin of vat and etc.
You have to pay tax and NIC on the profit you make via filing Self Assessment form.
I would suggest first get the business name register (website etc) because you would need it to start business.
As you are employed you may want to go via a limited company route. But it also involves compliance, admin and it cost more in accounting fees and tax.
Give your answer to this question below!