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UK Tax advice needed

Discussion in 'Business & Tax Advice' started by kimkils, Sep 20, 2010.

  1. kimkils

    kimkils Power Member

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    Over the past year i've made some money on the internet (the BH way :p) and am trying to go more WH by using BH funds, the thing is i am just out of University and am thinking of registering self employed.

    Will the tax man inquire about all my previous earnings over the past year? Or will my "self employment" simply start from when i apply?

    I understand that paying taxes is a thing that we must do (unfortunately!) but how far can paypal go as to avoiding this? If i receive money with paypal and transfer to a savings account based soley online, will the tax man know its there? What if i just keep it in my paypal account? Then buy stuff off of eBay or something?

    PLEASE can anybody share their tax knowledge, thanks so much! :cool:
     
  2. Delboy2424

    Delboy2424 Regular Member

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    you will need to notify HMRC when you start irrespective of whether you are making money, you have 3 months after you start to tell them - or face a penalty if someone rats you out!!!

    You may be asked your previous employment in any line of query as a genuine registered student unlikely this will be taken further.

    In terms of tax you will be able to earn circ £6k net profit before you start paying tax (assuming you dont have another job in which case all profit will become taxable assuming you earn over £6k circ in your FT job), make a loss then HMRC will give you money back if you are paying tax elsewhere- but make sure you have your sh!t in order when you go down this route in case of query.

    If you are self employed only then you will also need to register for class 2 NI - this is a must - if you are expecting to make less than £5k profit on your SE, write them a short letter asking for an exemption - you will be granted one which will save you £2+per week.

    In terms of paypal, you will need to demonstrate to HMRC all taxable income, this includes paypal, direct bank income etc - they have the powers to access all your accounts they know about if they think you are "hiding"undisclosed earnings.

    If you work full-time now - you can offset any SE losses against your employed taxes paid thus reducing your overall liability - some people do this purely to pay less tax, although if challenged it is clear tax evasion if it consistently happens - ie running SE business at a loss.

    Hope this helps
     
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  3. homenet

    homenet Power Member

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    There is no way you can 'hide' your money in paypal and expect HMRC not to know about it. If they wanted to they can find out about every penny you have been paid that has some kind of paper trail.

    Depending how much you earnt before I would consider just declaring everything from the point you went self employed, that is obviously what I would do and by no means the legal way, but if its a relatively small amount then there is a very very low chance of it ever coming to light.
     
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  4. kimkils

    kimkils Power Member

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    Thanks very much for the responses. I have all the information i need and will fill in my form now. Quite excited, this is a milestone for me, thanks to BHW i can make a living on the interwebz like a gr0wn uP :p lol (i am a grownup)
     
  5. ExtraWinner

    ExtraWinner BANNED BANNED

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    Oooo cmon guys, are you serious?
    I am from Ireland, but as I am aware its similiar to UK.
    Believing that tax office knows everything is for pussys.

    I am making money with IM since 5 years and if you know how to cloak it you can easily avoid paying taxes.

    Register from now, forget about yesterday.
    Nobody will chase you or use Sarumans magic ball to spy on you. We are talking about BHW, not Pussy Land...
    Being affraid of goverment is for regular people or people from rigorous countries like US or eastern europe...
     
  6. pttugas

    pttugas Junior Member

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    Hello I'm from Manchester also Uni computer science. Tax! U are asking u just have to let then know if u take over 50k a year till there enjoy free and legal cash. U can call me add msn pdias.ingland@hotmail.com
    Posted via Mobile Device
     
  7. pttugas

    pttugas Junior Member

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    But if u like to give money way pay a 1pound a week;)
    Posted via Mobile Device
     
  8. ExtraWinner

    ExtraWinner BANNED BANNED

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    pttugas - this guy is talking!!!

    Thats BHW forum and UK/Ireland are famous for their fu(c)ked tax and monitoring systems...
    Use it for your own advantage!!!
     
  9. Hunwarrior

    Hunwarrior Jr. VIP Jr. VIP Premium Member

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    I used to live in UK, now i live in Europe. In Europe i say i pay tax in UK, in UK ... guess what i say? ;)
     
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  10. ShadeDream

    ShadeDream Elite Member

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    lmao jokers
     
  11. Olbol

    Olbol Junior Member

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    Exactly the same boat as you my friend ;)
     
  12. kimkils

    kimkils Power Member

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    are you serious???
     
  13. Hunwarrior

    Hunwarrior Jr. VIP Jr. VIP Premium Member

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    Oh, i just read that you wanna be self employed...
    To me that is a big NO.

    Start an Ltd, cost you in total about £100 (or free if you post all papers in yourself- search for company house), become the director, pay your salary,far more beneficial than a self employed status.
     
  14. carlx

    carlx Registered Member

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    Delboy, thank you for your response to this question, it is one i also share and the information provided will help in officially setting myself as self employed.
     
  15. Delboy2424

    Delboy2424 Regular Member

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    no worries glad to help - if you can make a profit of your ventures why run the risk of getting hammered (believe me they do when they catch you) - whilst I dont agree with the rates in the UK (circ 26% to HMRC) imo - the risk of getting caught not declaring far out ways the fees you pay - once you are on their hitlist they never leave you alone.

    Many go down the "open a LTD co" etc, they forget that to do this audited accounts need to be supplied to companies house and are open to far more scrutiny not too mention hundreds in obtaining audited accounts - up to you, but imo the self assesment route was/is open to all manor of abuse and is asking for people to try it on - you may be lucky and not get a query if thats how you want to go about your finances - you may get one anyway but if you are clean you have nothing to worry about - LTD company fudging will get you a serious court date if caught!!!
     
  16. Proteus

    Proteus Junior Member

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    There are ways, its complicated but offshore business accounts with cards are the way to go to spend illgottengains in the UK.
     
  17. ExtraWinner

    ExtraWinner BANNED BANNED

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    Fcuk, just move your ass 200 kilometers to channel islands or isle of man... Job is done - no taxes and legal.
     
  18. hollaholla

    hollaholla Newbie

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    i paid tax at work for years.. they can ******** off if they think they gonna earn off my extra curriculars.

    only way i see me getting in trouble is if the people who pay me get audited. i have had cheques from government run schemes and never batted an eyelid.

    easier to be under the radar if you have a job i guess. Its when you have bank accounts with lotsa cash in and no explination i imagine you get flagged up. More so if your on the dole.

    like my mate who knocks out weed and was putting close to £5k a month cash into his bank. with no job. living at his parents. lol. they didnt even notice him.
     
  19. ShadeDream

    ShadeDream Elite Member

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    Wait, what If someone goes for an offshore bank in the Channel Islands like HSBC? You earn money through CPA (from US companies) and you get it sent to you to your offshore Channel Islands HSBC bank, does this mean you cannot get taxed on this money in the UK? Can you then use your debit card to go on a shopping spree in the UK without worring about TAX? lol
     
  20. Pyronix

    Pyronix Junior Member

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    Pending how much your earning are i would go limited offshore or
    if you have no ties and family life allows it go non-domicile
    uk corporation tax is 19 - 30%
    and Uk income tax rates

    Basic rate: 20% £0-£37,400
    Higher rate: 40% Over £37,401-£150,000
    Additional rate: 50% Over £150,000

    if its good enough for google lol
    Code:
    http://www.theregister.co.uk/2009/12/21/google_tax/
     
    Last edited: Sep 21, 2010