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Paying Tax on CPA Earnings? UK

Discussion in 'Business & Tax Advice' started by dmxsta, Jan 9, 2014.

  1. dmxsta

    dmxsta Regular Member

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    So I've recently started to make around $250 (£150) daily, my friends keep telling me I should start paying my tax and national insurance. If I don't they say it will get caught up on me and I get a hefty bill...
    Is there any other CPA/PPD'ers here that pay there taxes? because I have been told I can claim stuff back on my tax like broadband fees etc... I know this question sounds kinda nooby and all but I need some advice!
    What's the eaisest way to start paying my tax on my CPA income? I don't even know where to start...

    Thanks all!
     
  2. ahiddenman

    ahiddenman Elite Member

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    Setup LTD company in the UK, register with HMRC and hire an accountant.

    The accountant will take care of everything for you then regarding the yearly tax returns, business expenses (broadband, partial electricity bill payment, new business laptop or whatever) etc :)

    Hope this helps!
     
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    Last edited: Jan 9, 2014
  3. ahiddenman

    ahiddenman Elite Member

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    Just added a little to my post above -- also considering your from the UK you may be interested in this company for a complete business formation :)

    http://www.companyformations247.co.uk

    Little easier than doing it all yourself and I can vouch for them!
     
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  4. SEO Allstars

    SEO Allstars Newbie

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    I would claim anything thats going into your bank account.

    For payments sent to paypal, payza, payoneer and things like that, as long as you don't do a bank transfer, you don't have to claim that.

    Chances are, even if you didn't claim anything, you probably would be fine, but there is always that small chance that you might be randomly looked upon when you file your taxes, and if they find out you didn't claim thousands of dollars, you could get into trouble.

    I wouldn't go as far as creating a company and hiring an accountant. But print out all your earnings that have been transferred into your bank, add it all up and claim it as commissions on your tax return.

    You can probably just print out all your earnings, go to a tax filing place and have them take care of it all for you.
     
  5. dmxsta

    dmxsta Regular Member

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    Thanks for the quick and helpful reply!

    Yeah I was thinking if i kept most of the payments in Paypal and didn't transfer them to my bank account nobody would know, I would just pay tax on the earnings I declare right?
     
  6. SEO Allstars

    SEO Allstars Newbie

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    ^^Yeah you would just pay tax on the earnings you declare.

    Just make sure you don't do a bank transfer from paypal to your bank account and you will be fine.

    The odds of something happening are low, but its better to be safe then sorry.
     
  7. Groen

    Groen Regular Member

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    Doesn't paypal report you to the appropiate authorities when you reach around $20k in a year? Is that only in the US or am I totally wrong?
     
  8. deals24

    deals24 Registered Member

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    The easiest way is just register as self employed and do the tax return once in year. Use an accountant, it will cost only around £150-200 for tax return, also they can advice. If you pay at least some tax you will be fine, very small change that they will investigate you.
     
  9. dmxsta

    dmxsta Regular Member

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    Yeah your correct, they do...
     
  10. DanDanger

    DanDanger Junior Member

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    Welcome to the world of tax.

    Register as self employed or setup a LTD (theres pros and cons to both of them) and get an accountant.

    The accountant will save you well over what you're paying them and they handle everything for you.
     
  11. happyandrew

    happyandrew Newbie

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    I think you are patriot person compare to few of them.Nice to see such a wonderful peoples.Nowadays nobody honest here !
    Long live tax payers!
     
  12. Ripperdoc

    Ripperdoc Newbie

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    DanDanger is right, a good accountant is worth his weight in gold, so look around.

    One creative method I've come across is when paying yourself a salary keep it below the tax and national insurance threshold; I think its about £5,885 for 2013/2014. You then use dividends to pay yourself the rest, that way you only get taxed 20% corporation tax at the end of the year.
     
  13. oxonbeef

    oxonbeef BANNED BANNED

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    Second that. Used them for years, Registered office and mailing address as well.
    Definitely worth your while investing in the full package.
     
  14. Aaric

    Aaric Elite Member

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    yes you should pay taxes.
    good to go for company.
     
  15. jagtheboat

    jagtheboat Newbie

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    I'm interested to know what to put in that tax ref. box in Paypal. If you leave it blank will they still pay you? If you fill it in with your UK tax number, will they immediately inform the tax office of your earnings?