Registering a small business?

[Makoto]

Do you have to register all businesses or only if you earn x amount a year/month??

[budda]

In what sense?

You have to declare for VAT if you do more than £50k of business a year I think.

But there is no specific need to become a limited company, people just do it to remove the risk on themselves and put it onto the company.

[Tweety]

u need to tell the inland revenue that u r earning yes

[Joolyknockers]

Hi

If you are starting up a small business you must register as self employed within 3 months of starting trading. If you don't you will incur a penalty. You have to fill out annual tax returns and pay class 2/ class4 NICs depending on your profit from self employment.

You don't need to register for VAT until your turnover is £60k

[klintock]

If you are starting up a small business you must register as self employed within 3 months of starting trading. If you don't you will incur a penalty. You have to fill out annual tax returns and pay class 2/ class4 NICs depending on your profit from self employment.

:rolleyes:

Yeah, right.

You don't need to register for VAT until your turnover is £60k

:rolleyes:

You wouldn't be one of those wonderful people in the "government" who earns their living through armed robbery and threats, would you?

[Joolyknockers]

You wouldn't be one of those wonderful people in the "government" who earns their living through armed robbery and threats, would you?

Yes, but I'm not quite that extreme personally :rolleyes: What do you do?? :p

[klintock]

Yes, but I'm not quite that extreme personally :rolleyes:

Ah well, at least your honest about where your wages come from. Ever thought about doing work in a sector that doesn't involve violence and threats? You know, something that's not theft or extortion?

What do you do?? :p

Hypnotist mostly. People pay me for my services voluntarily. Aren't I lucky?

[Makoto]

What sort of fee's should I expect to pay when it comes to tax and what not for a low income "hobby business"?

[Joolyknockers]

Ah well, at least your honest about where your wages come from. Ever thought about doing work in a sector that doesn't involve violence and threats? You know, something that's not theft or extortion?



I have thought about it, but working for IR you see how badly some employees are treated and how quickly some businesses fold that you become too scared to go and work in the real world! I'm also training to be accountant, so I suppose thats another form of theft and extortion really...

[Joolyknockers]

What sort of fee's should I expect to pay when it comes to tax and what not for a low income "hobby business"?

If you have full time paid employment as well, expect to pay 22% of your net profit in tax. If your net profit exceeds the lower earnings limit (I think this is about £4435 p/a off the top of my head) you will have to pay class 2 NICs of £2.10 a week, if your net profit exceeds £4895 p/a you will also be liable to Class 4 NIC's on the self employment income exceeding that amount @ 8%.

There is no exception for "hobbies" - basically if you are making money from it
the IR wants their share. Bear in mind there are expenses and capital allowances you can claim to reduce your profit net figure though.

[klintock]

I have thought about it, but working for IR you see how badly some employees are treated and how quickly some businesses fold that you become too scared to go and work in the real world!

These would be the ones you help shove under making sure you get your cut?

I'm also training to be accountant, so I suppose thats another form of theft and extortion really

Only if you are using armed men to find "customers". ;)

You don't have to pay tax if your not in the country, right? :)

[Joolyknockers]

You don't have to pay tax if your not in the country, right? :)


Haha, depends on your residence status and whether you still have income arising from the UK.

[klintock]

What is the UK, factually? ;)

[sophia]

What is the UK, factually? ;)

oh klintock, i think i love you :love:

[Makoto]

im gonna give the tax office a ring and see what they say :).

[DG]

You don't need to register for VAT until your turnover is £60k


is it £60,000 or £15,000 in any one quarter of a year?

I know a gas installer who doesn't want to be VAT regsitered and when he aproaches the limit where you need to regsiter he stops working, cos if he was VAT regsitered he'd have to carge all his customers an extra 17.5% more for his services and thus lose business, so better he stops working and goes on holiday.

The main thing thugh taking him over the limit is buying gas boilers which cost about £700 a time. Adds to his turnover but not his profits as he makes the money on his hourly rate not what he buys to get the job done.

[Kentish]

is it £60,000 or £15,000 in any one quarter of a year?

I know a gas installer who doesn't want to be VAT regsitered and when he aproaches the limit where you need to regsiter he stops working, cos if he was VAT regsitered he'd have to carge all his customers an extra 17.5% more for his services and thus lose business, so better he stops working and goes on holiday.

The main thing thugh taking him over the limit is buying gas boilers which cost about £700 a time. Adds to his turnover but not his profits as he makes the money on his hourly rate not what he buys to get the job done.
He can charge what he can get away with. There is no obligation to add 17.5% to his presumably already extortionate fees.