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Do you pay tax from adsence earnings? [UK]

Discussion in 'Business & Tax Advice' started by testyy, Jul 23, 2014.

  1. testyy

    testyy Regular Member

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    I currently earn some £20 a day from adsence. This is under my £10,000 personal allowance. Do I still have to register as Self-employed? I don't have any other source of income because I'm a student. What are my chances of being reported/etc.? I would rather be legally self employed and earning less than £10000 and sleeping without any worries.

    Can anyone guide me through the process if you are paying UK taxes. What are the benefits etc.? I applied today but I gave no information about my website, so how exactly will they know that I paid my tax from that website?
     
  2. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Premium Member

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    Here you go, start reading these:
    http://www.hmrc.gov.uk/newbusinesses/iwtregister-as-self-employed.shtml
    http://www.hmrc.gov.uk/selfemployed/
    http://www.hmrc.gov.uk/students/self_emp_studs_14_1.htm
    http://www.hmrc.gov.uk/students/work_in_term_and_hols_9_1.htm
    http://www.hmrc.gov.uk/students/

    You will probably be fine Tax wise but you need to assess whether your income has any bearing on your Student financing (if you have any)
    Also have a look at some student sites (http://www.thestudentroom.co.uk/) and have look round your college/Uni campus for advice.
     
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  3. nicknax

    nicknax Newbie

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    £20 / day is over £6,000 a year. That's a good start to growing a proper income.

    Once you start earning more, like if you get a job after finishing your studies, then you'll definitely need to declare that money.

    I'd register now if I were you. At least talk to them. Like you say it shouldn't mean you having to pay any tax on it but it could save a lot of hassle later.

    Edit: I should have read what you wrote better - I see you have applied. Should be fine. They'll ask for any details they want.
     
    Last edited: Jul 26, 2014
  4. ddederick

    ddederick Jr. VIP Jr. VIP Premium Member

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    I thought you need to pay VAT as Google Europe is Ireland based company.
     
  5. Jubv

    Jubv BANNED BANNED

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    You will have to pay National Insurance if you earn over £8,000 a year, so you might be okay. Even though it's still under the personal allowance, you'd probably be best talking to an accountant if you're concerned.

    National Insurance Rates: https://www.gov.uk/self-employed-national-insurance-rates
     
  6. jak19

    jak19 Elite Member

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    as you are doing ok now you will likely do better in future just be upfront about it
     
  7. MrClifford

    MrClifford Registered Member

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    Currently reading into this as registering as a sole trader. It seems a sole trader (easiest way to inform HMRC you are a business) means you do not need to be VAT registered until a turnover of £79,000+ in a 12 month period
     
  8. Jubv

    Jubv BANNED BANNED

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    I'm not quite sure about the legalities around a sole trader as I haven't looked into that, but I can confirm that this is true for limited companies. VAT shouldn't be too much of a priority when you are starting out.