Working and running small business

[Fabric-Comforts]

Hi Everyone

I've just stumbled accross this great site!!!

I have an idea for starting a small website based business, I've been thinking about it for a while and wondered what the implications would be regarding tax e.t.c I work full time and would be relunctant to give up my full time job in the event that things didn't work out. But I don't want to get in to trouble with the inland revenue

Any ideas would be much appreciated

Thanks

[Indizine]

You can register as self employed aside form your main job and you will pay tax at the appropriate rate. Consider how much you earn, what tax bracket your additonal income might shove you in (40% maybe?) and how feasible, after overheads,. this business might be. You wont get into any trouble as long as you declare all your taxable income to HMRC and pay tax and NI where and when due.

[Fabric-Comforts]

Thanks for that, I just found a thread all about it, sorry should have done a search first

Thanks again

[helen2263]

Hi Everyone

I've just stumbled accross this great site!!!

I have an idea for starting a small website based business, I've been thinking about it for a while and wondered what the implications would be regarding tax e.t.c I work full time and would be relunctant to give up my full time job in the event that things didn't work out. But I don't want to get in to trouble with the inland revenue

Any ideas would be much appreciated

Thanks

I am a bit curious what you mean about TAX, do you mean PAYE TAX or Corporation Tax.


Thanks


helen

[helen2263]

Hi Everyone

I've just stumbled accross this great site!!!

I have an idea for starting a small website based business, I've been thinking about it for a while and wondered what the implications would be regarding tax e.t.c I work full time and would be relunctant to give up my full time job in the event that things didn't work out. But I don't want to get in to trouble with the inland revenue

Any ideas would be much appreciated

Thanks

Sorry I got the answer looking at Indizine reply to your post, you worry about tax if you put yourself on Payroll and take a wage from your company and of course it depend how much wage you pay yourself. Corporation Tax you worry about if you have a certain amount of money I think about £10,000.00 in profit then Inland Revenue will be interest to hear from you.

Inland Revenue are very helpful also you can get lots of advice from the Govt business website for new business.

helen

[Indizine]

Helens bit about CT is incorrect i'm afraid,

Firstly, no need to worry on any point.

If you are a Ltd Co you will pay Cor Tax at the prevailing rate on your profits but I dont the OP is going down th route so it doesn't matter and pointless expanign on it further.

Visit www.hmrc.gov.uk for all the info you need.

[meadowharris]

Hi,

If you decide to start a small business and run it as a sole trader, you will be income tax on your turnover from the business, in addition to income tax on your salary. You have to register with inland revenue within 3 months of trading or you may be fined.

Hope this helps however there are many websites that explain clearly the tax implication of running as a soletrader and being employed full time

Leigh