There's obviously a few people on here with knowledge in this area.

Example - You make £1000 per month using Internet Marketing. How would you pay tax for it in The UK? Without setting up a new company and all that lark. Do you get into touch with HMRC and let them know what your up to or what?

Cheers!

You either get an accountant or do your own taxes. I wouldn't recommend seeking any advice here, and there's no point me reiterating what you can already find by Googling. There's a ton of information out there on how you go about things, including plenty of information on the hmrc's own site.

Register as self employed, do tax returns. You have 3 months to register starting from the day you earn your first bit of money.
I would advise putting about 30-40% of your earnings aside each month ready for tax season. If you end up with a smaller bill than you've saved up for you get a nice wedge of cash to play around with.

If you're working with clients rather than a CPA company (for example) I would advise thinking about starting a ltd company. Last thing you want is an unsatisfied customer taking you for all you have.

Hope that helps.

You've got 3 months to let the tax man know that you're trading or you're up for a fine. As said, get in touch with the tax man, they're really very friendly IF you play straight and they offer a load of info for you to get things right.

I went on a day workshop at my local tax office and got the information I needed to stay legal.

Speaking of which, I've doing my self-assessment in the next few days and I'm ready to pay the bill!

As said above, put money aside to pay the bill!

Here's something I sent to a member who asked me about his situation.

Income Tax rates and allowances: http://www.hmrc.gov.uk/rates/it.htm

The Personal Allowance is currently: £7,475, come April 6th it will be: £8,105 - and in the last tax year it was: £6,475

If your not going over the allowances I wouldn't bother. But if your over the allowances then find a competent accountant. And make sure you have good records, you don’t need to do double entry book keeping, simple: date, description, income, expenditure - will do. The accountants bill will be a lot less that way.

On the LTD, if it's just you. You need to make sure everything is kept separate (personal vs business - LTD should have it’s own business account), otherwise the limited liability doesn't stand.

For the LTD, you only need to put away 20% to 26%. See: http://www.hmrc.gov.uk/rates/corp.htm

First of all, you need to register with HMRC. All of the things mentioned above seem correct.

Lets assume that you make £1000 per month. No reason to create an LTD because it costs. The tax is less but it costs money to create it.

So, lets assume you register as a sole trader.

You pay 3 different taxes. Class 2 NIC, Class 4 NIC and Income tax.

Class 2 = £2.5/week (direct debit)
Class 4= 9% above £7225
Income tax = 20% above £7475

So for £1000 per month, you will have to pay APPROXIMATELY:
2.5x52=130
(12000-7225)*9%=429.75
(12000-7475)*20%=902

Total ----$1464.75
Assumption=£1000 PROFIT not Revenue
You have three months to call HMRC to register as a sole trader (from the first time you operate) and the tax year ends 5th of April.
Class 2 are paid monthly
Class 4 and income tax are paid annually when you submit your tax return.

Its easy to register as a sole trader and everything (tax submissions etc) are online(you will get an account for that).

Get some good software to keep track of everything like Sage.

Speak to an accountant to see what you can claim as expenses. e.g. If working from home how much utility bills you can claim. The more you claim as an expense the less tax you pay. Say you use your car for work and please you can claim a % of that too.

Originally Posted by bakxos

First of all, you need to register with HMRC. All of the things mentioned above seem correct.

Lets assume that you make £1000 per month. No reason to create an LTD because it costs. The tax is less but it costs money to create it.

So, lets assume you register as a sole trader.

You pay 3 different taxes. Class 2 NIC, Class 4 NIC and Income tax.

Class 2 = £2.5/week (direct debit)
Class 4= 9% above £7225
Income tax = 20% above £7475

So for £1000 per month, you will have to pay APPROXIMATELY:
2.5x52=130
(12000-7225)*9%=429.75
(12000-7475)*20%=902

Total ----$1464.75
Assumption=£1000 PROFIT not Revenue
You have three months to call HMRC to register as a sole trader (from the first time you operate) and the tax year ends 5th of April.
Class 2 are paid monthly
Class 4 and income tax are paid annually when you submit your tax return.

Its easy to register as a sole trader and everything (tax submissions etc) are online(you will get an account for that).

Cheers for the advice guys. So effectively here, You're saying. It's 29% tax once you've pretty much gone over £7500 ish? Cheers

Essentially yes
You can claim certain expenses though (server costs,domains,outsourcing) as well as expenses such as a part of your house which you use to work,a part of cleaning expenses , a part of heating etc etc.

I would advise you to register as a sole trader (its illegal not to do anyway). The tax return takes 1 hour to submit and they only require you to have evidence of income and expenses(not formal accounting records like an Ltd does). So for example, for £1000 per month, paypal transactions history should be enough. You can even register on sage (it has a free account). If you dont make enough money (less than £5500 if i remember correctly), you can even claim back your £2.5/week.

Good luck

Originally Posted by bakxos

Essentially yes
You can claim certain expenses though (server costs,domains,outsourcing) as well as expenses such as a part of your house which you use to work,a part of cleaning expenses , a part of heating etc etc.

I would advise you to register as a sole trader (its illegal not to do anyway). The tax return takes 1 hour to submit and they only require you to have evidence of income and expenses(not formal accounting records like an Ltd does). So for example, for £1000 per month, paypal transactions history should be enough. You can even register on sage (it has a free account). If you dont make enough money (less than £5500 if i remember correctly), you can even claim back your £2.5/week.

Good luck

Fantastic, Cheers! If you're only receiving Cheques (100%) of the time. How would you usualy record these?

What about if you live abroad, eg in Japan or Philippines but earnings still get paid to your UK account but you are not physically based in the UK?

What I was told, by the tax man himself, is that even if you haven't gone over the personal allowance threshold you still do need to bother!

File your accounts and let the tax man see that you're below the threshold!

If you want to stay legal in this country, UK, you have to have accounts filed EVERY YEAR, even if you come in below and or don't turn a profit.

Very dangerous advice "not to bother"!!!

OP, take no ones word for it, not even mine, GO find out for yourself, the consequences of screwing with the big dog and getting it wrong are just too horrible to think about.

Originally Posted by savvypro

Here's something I sent to a member who asked me about his situation.

Income Tax rates and allowances: http://www.hmrc.gov.uk/rates/it.htm

The Personal Allowance is currently: £7,475, come April 6th it will be: £8,105 - and in the last tax year it was: £6,475

If your not going over the allowances I wouldn't bother. But if your over the allowances then find a competent accountant. And make sure you have good records, you don’t need to do double entry book keeping, simple: date, description, income, expenditure - will do. The accountants bill will be a lot less that way.

On the LTD, if it's just you. You need to make sure everything is kept separate (personal vs business - LTD should have it’s own business account), otherwise the limited liability doesn't stand.

For the LTD, you only need to put away 20% to 26%. See: http://www.hmrc.gov.uk/rates/corp.htm

You are correct, you cant just dont bother.Its tax evasion and its illegal ofc. Why not bother actually?If you are below the threshold, you pay nothing but you are sticking to the laws and 100% legit professional....

Even if you have zero earnings, you need to submit tax returns. Operating a business is not connected to profits. Dormant companies are still companies for example.

For the cheques, you can :
1.Keep copies of them (photocopies)
2.Have a record of the bank transactions(money flowing in...)


If you leave abroad and your business is abroad, then you need to adhere to your local laws. For the UK for example, a business is liable for UK tax if it is operates in the UK (the bank account is irrelevant).

This just about covers most things i believe. Thanks all!

Originally Posted by Jon0

*snip*

Originally Posted by savvypro

If your not going over the allowances I wouldn't bother.

@jon This is *exactly* the reason my advice was NOT to listen to anyone on here when it comes to tax. The advice this man has just given you with land in trouble with the HMRC. I also think he should learn the difference between "your" and "you're" before he even thinks of giving someone tax advice next time.

Whether you owe them money or not, you always have to declare your income and do send in a tax return.

The HMRC aren't as crazy as the US IR, but it's best to always stay above board as you never know when something can come back to bite you. A member of my family recently got hit with a £20k tax assessment because of some discrepancies. In reality they owed only a couple of grand, but when you don't declare all your income and keep good records you're open to these "tax assessments" of what they believe you should owe.

You'll be fine doing your own taxes online just now, it's easy, but do make sure you spend a few days reading as much as you can from authority sites and the HMRC's own site, and of course give them a phone if you have any questions for them.

Originally Posted by Jon0

Fantastic, Cheers! If you're only receiving Cheques (100%) of the time. How would you usualy record these?

The bank give you a receipt when you deposit a cheque.

Originally Posted by CPAchick

Very dangerous advice "not to bother"!!!

If you reread my post you'll see that I say: I wouldn't bother. Never said: "not to bother".

But I'll make it clear why I said I wouldn't bother: most people reading this thread will be spending more than they will ever make back - not exactly a definition of a self employed person - more a bankrupt person.

The horses mouth: read: http://www.hmrc.gov.uk/manuals/salfmanual/salf210.htm

SALF210 - Self Assessment Tax Returns: other taxpayer obligations: requirement to notify chargeability

Taxpayers who do not receive a tax return are required to notify chargeability to income tax or capital gains tax

Section 7(1)

Self Assessment is a system for dealing with tax returns and claims. It applies to taxpayers who are identified as requiring a tax return and who are issued with a notice to file or a paper self assessment tax return incorporating a notice to file. It also applies to people who make a claim outside a tax return.

HMRC is not always able to identify who needs a tax return so there is a requirement to notify chargeability. Any person who has not been required to complete a tax return, but who nonetheless has profits or chargeable gains on which tax is due must notify an officer of the Board that they are chargeable to tax.

Bolding is my emphasis. Only if you “has profits” or "chargeable gains on which tax is due" which for a person only starts above the threshold allowances for when they are "chargeable to tax". Then you must notify.

Time limit for notification
The time limit for notifying chargeability is six months from the end of the tax year in which the tax liability arises. Notification must be received on or before 5 October.

You have until the 5th of October in the next tax year, to tell them about tax you owe them in the previous tax year.

Originally Posted by bakxos

Even if you have zero earnings, you need to submit tax returns.

See above.

Operating a business is not connected to profits.

Most businesses need to make a profit to keep going.

Dormant companies are still companies for example.

Irrelevant here, as when you submit form CT41G, you tell HMRC that the company is not trading, that it is dormant and you don’t have to file a tax return for that period on (but you still have to for the period up to the dormant date). Now if you trade after having told them that the company is dormant (without filing form CT204), than you are breaking the law - which is a completely different situation to a person not filing a tax return when they don’t earn above the threshold.

My point being: It is not tax evasion, when you owe no taxes. Nor is it illegal. Just a technicality. And one from 10+ years of experience, they don't care about.

For those abroad:
As a basic rule: UK tax is territory based, especially for company's (for the most part).
For individuals it's domiciled based - if you spend less than 90 days a tax year in the UK. Then you as an individual owe no tax.

Stay on the right side of the tax man cause once he gets his teeth into you he wil squeeze and squeeze until your not moving anymore!!

Originally Posted by BlueTurtle

@jon This is *exactly* the reason my advice was NOT to listen to anyone on here when it comes to tax. The advice this man has just given you with land in trouble with the HMRC.

Take a look at my previous post in which I quote HMRC directly.

I also think he should learn the difference between "your" and "you're" before he even thinks of giving someone tax advice next time.

I do know the difference, it just so happens my brain works faster than I type. And English is a second language to me.

Whether you owe them money or not, you always have to declare your income and do send in a tax return.

See my direct quote.

The HMRC aren't as crazy as the US IR,

IRS not IR.

but it's best to always stay above board as you never know when something can come back to bite you. A member of my family recently got hit with a £20k tax assessment because of some discrepancies. In reality they owed only a couple of grand, but when you don't declare all your income and keep good records you're open to these "tax assessments" of what they believe you should owe.

Reason to find a competent accountant to check everything before you send them anything. Because the moment you sign the declaration, you are entering into a contract with HMRC.

I'm doing my tax right now!

October is just for paper tax returns, It's tax time right now for people who submit their tax returns online, so I'm doing mine this week to avoid any fees, the due date is the end of January.

It's not that hard to do you own tax, just go through your bank account and key in your businesses income and outgoings to an excel document, then key them in online at HMRC.

Accountants can help, but for what they charge and what they will save you, to me it's not worth it unless you are doing HUGE business or have employees.

Tip: NEVER try to trick the HMRC, they can come down on you and literally ruin you.

Originally Posted by Jon0

There's obviously a few people on here with knowledge in this area.

Example - You make £1000 per month using Internet Marketing. How would you pay tax for it in The UK? Without setting up a new company and all that lark. Do you get into touch with HMRC and let them know what your up to or what?

Cheers!

Most of what everyone has already said is relevant. Don't forget if you're in a PAYE job you'll probably be liable to tax on all the £1000 a month earnings, assuming your PAYE employment is over this year's threshold.

Expenses - claim for as much as you can! If you buy ink or paper for a printer, claim those as an expense, plus the mileage to go to the shop to buy them. You get about 40p a mile. People have already talked about expenses you can take into account for working from home, electric, heating, phone allowance etc.

Domain hosting, domain names, buying services on here are all expenses you can deduct from your overall income. Don't forget that PayPal charge fees for transactions as they can be deducted too as can any other bank fees you incur.

This is why it's good to speak to an accountant. They'll know stuff you can claim for that you wouldn't know about. But you have to way up the cost of the accountancy fees against what they'll save you and see if it's worth it or not.

Be upfront, register as self employed as everyone has stated whether you're in a PAYE job as well.

Originally Posted by VirtualSEO

What about if you live abroad, eg in Japan or Philippines but earnings still get paid to your UK account but you are not physically based in the UK?

Doesn't matter. Unless you have changed your residency status. If you're out of the UK for more than 90 days a year you can change your place of abode to the other country and will be liable for paying tax in that country and not the UK.

You must notify the HMRC and do this officially. If you don't and they catch up with you later they will demand all the tax, plus interest plus a fine (100% to start with working down if you co-operate, usually down to 40%). I've experienced it myself

I rang HMRC and they said if your profit is less than £2500 you don't have to fill out a self assessment. You just have to declare it....

If your earning more you fill out a self assessment!

Originally Posted by pokerjk

I rang HMRC and they said if your profit is less than £2500 you don't have to fill out a self assessment. You just have to declare it....

If your earning more you fill out a self assessment!

But don't forget if you are in a paid job, paying tax you have to take these earnings into account too.

Sorry, just don't want people who are earning say, £20.000 a year in a 9 to 5 job thinking that the money they are earning in the evenings doing IM is not taxable if they are only making a small profit. It is.

You have to total ALL your income from every source, including interest from bank accounts, share dividends, earnings from PAYE, cash payments (yeah right!), eBay sales if you bought something to sell, etc etc.

Originally Posted by dotcomdesigns

But don't forget if you are in a paid job, paying tax you have to take these earnings into account too.

Sorry, just don't want people who are earning say, £20.000 a year in a 9 to 5 job thinking that the money they are earning in the evenings doing IM is not taxable if they are only making a small profit. It is.

You have to total ALL your income from every source, including interest from bank accounts, share dividends, earnings from PAYE, cash payments (yeah right!), eBay sales if you bought something to sell, etc etc.

Sure this £2500 is taxable if you earn enough in your full time job too. I'm just saying you don't have to fill out a self assessment. I have a job as well and thats what they said. I only have declare it and not fill out a self assessment. I never heard that before as I was about to submit my self assessment online.

On the simple accounts, if you do it by hand (old school), a double cash column book, is what you'll need.

Originally Posted by dotcomdesigns

But don't forget if you are in a paid job, paying tax you have to take these earnings into account too.

Sorry, just don't want people who are earning say, £20.000 a year in a 9 to 5 job thinking that the money they are earning in the evenings doing IM is not taxable if they are only making a small profit. It is.

You have to total ALL your income from every source, including interest from bank accounts, share dividends, earnings from PAYE, cash payments (yeah right!), eBay sales if you bought something to sell, etc etc.

Yep, a £20,000 a year or even a £10,000 a year job puts you over the threshold allowances. Before you even start taking into account the extra on the side income.

Originally Posted by savvypro

If you reread my post you'll see that I say: I wouldn't bother. Never said: "not to bother".

But I'll make it clear why I said I wouldn't bother: most people reading this thread will be spending more than they will ever make back - not exactly a definition of a self employed person - more a bankrupt person.

The horses mouth: read: http://www.hmrc.gov.uk/manuals/salfmanual/salf210.htm


Bolding is my emphasis. Only if you “has profits” or "chargeable gains on which tax is due" which for a person only starts above the threshold allowances for when they are "chargeable to tax". Then you must notify.

You have until the 5th of October in the next tax year, to tell them about tax you owe them in the previous tax year.

See above.

Most businesses need to make a profit to keep going.

My point being: It is not tax evasion, when you owe no taxes. Nor is it illegal. Just a technicality. And one from 10+ years of experience, they don't care about.

You are 100% and completely informed in the worst possible way and what you link here are really not applicable for sole traders.

This is self-assessment but not for sole traders...
Do you know that even if you get £10 pounds you need to be able to issue an invoice? You also need to contribute NIC Class 2 which are paid monthly
and the thresholds for NIC and INcome tax are different.

Do you know that when you trade you are legally responsible for potential losses of your business (for sole traders)? Only for this reason, you need to register your business.

Everything you submit to HMRC that is not for a company is called self-assessment. Sole traders and Employees self-assessments are two dinstict things.

I would suggest you go to speak to an accountant and before doing that, please avoid insisting on things that you just assume.

The fact that you have been doing for 10years is also irrelevant.

I also laughed about the point about profits and going concern. Bear in mind, that you can claim expenses for wages and profits are after expenses where wages are included. So getting paid from a company and the company being in a loss position is two distinct thigns too. Just a scenario.


Losses can be also carried forward so "wasting " losses is inefficient. In any case, you need to get informed and stop misinforming others.

Originally Posted by bakxos

You are 100% and completely informed in the worst possible way and what you link here are really not applicable for sole traders.

Where exactly did I say: "OK, I'll go along with this fictional sole trader discussion". Little hint: I didn't...

This is self-assessment but not for sole traders...

Correct...

Do you know that even if you get £10 pounds you need to be able to issue an invoice?

This make no sense. You issue invoices for services rendered or products delivered, unless you require payment before delivery/performance.

Registering as a sole trader doesn't give you special invoicing powers.

You also need to contribute NIC Class 2 which are paid monthly
and the thresholds for NIC and INcome tax are different.

Again, you assume that I have joined in the sole trader discussion.

Do you know that when you trade you are legally responsible for potential losses of your business (for sole traders)?

Which is why you should setup a company e.g. LTD - because as it stands (legally): companies have more rights than people. And they only cost £18 to setup.

Only for this reason, you need to register your business.

Everything you submit to HMRC that is not for a company is called self-assessment. Sole traders and Employees self-assessments are two dinstict things.

Already covered

I would suggest you go to speak to an accountant

Have done

and before doing that, please avoid insisting on things that you just assume.

So your saying, that facts I point to are assumptions.

The fact that you have been doing for 10years is also irrelevant.

Now who's doing the assuming.

10 years (actually more) of dealing with the tax man. I can count on experience from other people like: my uncle who is going on 20+ years as self employed. My dad was also self employed for a bit. I know of people who I can get advise from, who have gone up against the tax man, and won.

I also laughed about the point about profits and going concern. Bear in mind, that you can claim expenses for wages and profits are after expenses where wages are included. So getting paid from a company and the company being in a loss position is two distinct thigns too. Just a scenario.

Losses can be also carried forward so "wasting " losses is inefficient.

What's this in reference too, I have an idea, but I'm not going to make an assumption.

In any case, you need to get informed and stop misinforming others.

You need to stop assuming that I'm talking about the same thing.

Last post in this thread for me but since you are just confusing people,someone has to explain where you are making the mistake

If you make money, you need to pay taxes. If you dont make money, you are still liable to provide evidence that you dont have profits.

If you provide services or sell goods, you need to have registered as a sole trader,setup an Ltd (or any form for that matter)or work for a company.

The OP asked how he/she should pay for taxes if he/she is making £1000 from IM. Do you think he is employed by a company?

You said that if you were him and you were below the allowance,you would not bother.

Thats of course your opinion buts its an illegal thing to do. If you work and you have control over your work (there are condition that you can find online),you are deemed to be at least a sole trader and you need to register.

Profits, Losses, Allowances and Preferences and Experience are 100% irrelevant.

The letter I got says submit a return no matter how much money you have made/lost.

Originally Posted by bakxos

Last post in this thread for me but since you are just confusing people,someone has to explain where you are making the mistake

If you make money, you need to pay taxes.

Not for everyone living in the UK. Foreign nationals who earn an income outside of the UK, who don't bring that income into the UK. Don't have to pay taxes. You can check for yourself, there was a big fuss a couple of years ago when the tax rate was bumped up to a single one off yearly £30,000 or so payment.

If you dont make money, you are still liable to provide evidence that you dont have profits.

There are situations where you don't have to provide evidence, for example: if you stop being self employed in the tax year you are doing the tax return for (let's say for example: 2010/2011), but you stopped earning in the tax year previous to that one (2009/2010). All you have to do is state the date on the self assessment of when you stopped, sign it and send it back. No evidence required.

I know you see experience as irrelevant, that is your choice. When I did a similar tax return on behalf of a family member, I talked with my accountant, then phoned the tax help line to get their take, then phoned a week or so later to see if they would give me the same info - which they did.

If you provide services or sell goods, you need to have registered as a sole trader,setup an Ltd (or any form for that matter)or work for a company.

The OP asked how he/she should pay for taxes if he/she is making £1000 from IM. Do you think he is employed by a company?

The OP frames the question as an example, they could have a day job and are looking to dip their toes into IM, and just want to be prepared. You are jumping to the conclusion that he/she is earning what they state.

You said that if you were him and you were below the allowance,you would not bother.

Where exactly did I say I was him, then again where exactly did I even reference his post. Little hint: I didn't. You have made the assumption that I did.

Thats of course your opinion buts its an illegal thing to do.

Below is the section where CPAchick jumped to the conclusion, that I said: I wouldn’t bother filing. Which you then assumed was the correct assumption, in the post you made following hers. Both posts follow at the end.

Originally Posted by savvypro

If your not going over the allowances I wouldn't bother. But if your over the allowances then find a competent accountant. And make sure you have good records, you don’t need to do double entry book keeping, simple: date, description, income, expenditure - will do. The accountants bill will be a lot less that way.

Read exactly what it says in the quote above.

If I were referring to not filing because it was below the threshold allowances. I would have stated it clearly as in: “I wouldn't bother filing”. Or better yet: “I'd keep stum”.

But as the context of the paragraph is in relation to getting an accountant. I didn’t say anything about not filing.

If you work and you have control over your work (there are condition that you can find online),you are deemed to be at least a sole trader and you need to register.

Never said there wern't.

Profits, Losses, Allowances and Preferences and Experience are 100% irrelevant.

Interesting considering the assumptions you have made.



The posts that started it all off:

Originally Posted by CPAchick

What I was told, by the tax man himself, is that even if you haven't gone over the personal allowance threshold you still do need to bother!

File your accounts and let the tax man see that you're below the threshold!

If you want to stay legal in this country, UK, you have to have accounts filed EVERY YEAR, even if you come in below and or don't turn a profit.

Very dangerous advice "not to bother"!!!

OP, take no ones word for it, not even mine, GO find out for yourself, the consequences of screwing with the big dog and getting it wrong are just too horrible to think about.

Originally Posted by bakxos

You are correct, you cant just dont bother.Its tax evasion and its illegal ofc. Why not bother actually?If you are below the threshold, you pay nothing but you are sticking to the laws and 100% legit professional....

Even if you have zero earnings, you need to submit tax returns. Operating a business is not connected to profits. Dormant companies are still companies for example.

For the cheques, you can :
1.Keep copies of them (photocopies)
2.Have a record of the bank transactions(money flowing in...)


If you leave abroad and your business is abroad, then you need to adhere to your local laws. For the UK for example, a business is liable for UK tax if it is operates in the UK (the bank account is irrelevant).

What I was originally going to post - before people started making assumptions.
Was that you have more than one situation, it all depends on time.

If you have just started or are about to start, you have a couple of options. Either register as a sole trader/self employed and start putting money aside. Or start a company (which only costs £18 via the businesslink.gov.uk - a helpful tip: when you list names of share holders/directors (minimum for both is just 1), make sure you type it in as shown on whatever proof of ID you'll be showing to setup a business bank account - you'll save yourself the hassle of having to change the names later on when the bank does a records check with companies house). Best to get the advice of a competent accountant, before making a commitment.


The other situation is if you have been at it for some time, say way more than 6 months - going on a year or more. Going directly to HMRC and doing what should have been done just after you started, is going to result in pain - lots of it. Find an accountant, if you know people who have business or better yet have a high net worth - get their recommendation.

To minimise costs, you need to do the books. If you had been keeping a running total, listing everything you spent and gained. You are either done or nearly done. Print them out or put them in a spread sheet and then print them out and hand it to the accountant. If you haven't, you have some work to do. Double check everything as mistakes could cause problems later down the line.

Be prepared for a chunk of your bank account to be handed over as fees just to the accountant. Then you have your potential in taxes that are owed, and maybe late charges and interest.

If you survive, you then have to determine how to continue - the sole trader or company route. As you now have an accountant, pick their brains.

It sound like doom and gloom, but it isn't that bad going up against the tax man if you have a competent accountant as the intermediary. It will cost you, but you'll be able to sit with out problems.

Originally Posted by savvypro

Read exactly what it says in the quote above.

If I were referring to not filing because it was below the threshold allowances. I would have stated it clearly as in: “I wouldn't bother filing”. Or better yet: “I'd keep stum”.

You're telling us that
"I wouldn't bother"

and

"I wouldn't bother filing"

When the context of the former is referring to filing taxes, are in fact different things?

If you're not referring to filing taxes in the former statement, then what are you referring to? You wouldn't bother eating lunch? You wouldn't bother going for a walk? Which is it if it's not filing taxes?

Originally Posted by savvypro

if your not going over the allowances I wouldn't bother.

That's your message, so you're clearly saying that "i wouldn't bother" is not the same as "I wouldn't bother filing" in the above context?

You're just more concerned here with being right than helping the OP, and in doing so you're confusing anyone reading this who doesn't know how the tax system in the UK works.

OP, just go and see the tax man yourself and get it all explained from The Man himself.

I personally went to one of their free day workshops and got all the info I need to know - no reason you shouldn't do the same.

Like has been said before, listening to tax and legal advice from your fellow forum members might be comforting, if they're saying what you want to hear, but how do you know who to believe?

Go see the tax man! That's what I would do if I didn't know for sure what my liabilities were.

Originally Posted by BlueTurtle

You're telling us that
"I wouldn't bother"

and

"I wouldn't bother filing"

When the context of the former is referring to filing taxes, are in fact different things?

Again with the assumptions.

If you're not referring to filing taxes in the former statement, then what are you referring to? You wouldn't bother eating lunch? You wouldn't bother going for a walk? Which is it if it's not filing taxes?



That's your message, so you're clearly saying that "i wouldn't bother" is not the same as "I wouldn't bother filing" in the above context?

You clearly haven't read the paragraph, or what I wrote. And are jumping to conclusions to justify your assumptions.

You're just more concerned here with being right than helping the OP, and in doing so you're confusing anyone reading this who doesn't know how the tax system in the UK works.

I couldn't give a sh*t about being right. You and others have assumed a meaning. You are now trying to imply I mean something else entirely, even after I have clearly pointed out my meaning.

You are not me... so don't assume I think like you. If you need clarification, just ask. Instead of jumping to conclusions, interpreting a meaning which fits with your way of thinking, then posting it as fact that I said something. When I clearly haven't - but others have.

Originally Posted by BlueTurtle

...You're just more concerned here with being right than helping the OP, and in doing so you're confusing anyone reading this who doesn't know how the tax system in the UK works.

Agree with you there BlueTurtle!

And now I'm moving on from this thread and I'm off to file my own self-assessment form online...once I've done my annual hunt for my TAX ID & password that is!

Happy filing to one and all!