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Advice needed (UK People)

Discussion in 'Business & Tax Advice' started by TheArticleMan, May 10, 2015.

  1. TheArticleMan

    TheArticleMan Power Member

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    Hey guys,

    I was just wondering what the process and calculations needed for the following tax situation:

    If you are working full time with a salary so meaning tax is already deducted by employer.
    While also being self-employed and earning a profit online.

    How would you calculate the amount of tax you need to pay for your online earnings and which forms would you need to fill out? I'm sure there are people in this situation and know the course of action to take?

    Please no posts with "ask an accountant". I'm just posting to see members advice.

    Cheers guys!
     
  2. archon10

    archon10 BANNED BANNED

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    Does TurboTax support your country? I do the same thing most years and TurboTax calculates it for you.
     
  3. TheArticleMan

    TheArticleMan Power Member

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    There is not a UK version of that unfortunately :(.

    Thanks for the idea though!
     
  4. blackjack

    blackjack Regular Member

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    You will need to register with HMRC for self assesment as you have income other than your job which is not taxed at source.. Depending on your profit from your online, sometime HMRC will adjust your tax code for your job to collect the tax for your online profit.

    You pay tax on on your total taxable income (after deducting all allowable expenses) regardless of how your earn it.

    HMRC will add up all your taxable income, deduct your tax allowance, then tax according to what is left.
     
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  5. myopic1

    myopic1 Regular Member

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    So you're allowed £10,000 tax free before you need to pay anything, as we don't know your salary, let's assume you're on more than that.

    Your first step is to register for self assessment and Blackjack says above, your tax year is the 5th of April to the 5th of April of the following year. You need to send your tax return in and pay any relevant tax by the 31st of January 2016 (after the tax year end), so if your tax year ended last April (2015) you need to do your return by this January coming.

    As we don't know how much you earn online, let's assume it's below the threshold for the higher rate of taxable income. So you're going to pay 20% on everything you earn online. You can do this all online and I would advise you to as well, it's pretty straight forward using the HMRC's portal. You answer a few questions that are pretty straight forward about you and your business and then you tell them how much you made, spent, made in profit, earned through your full time job and how much tax you paid etc. Once you've done that, they'll tell you if you own them anything, you pay online and then you're good to go.

    If your earnings are small (you'll need to look up the actual figure), you may be able to pay through your workplace taxation by notifying HMRC and they'll alter your tax code and deduct the payments from your monthly salary.

    Don't take this as advice, not a qualified professional.
     
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    Last edited: May 10, 2015