Setting up an individual business with PayPal?

[caff]

Hi

I am setting up a business, selling self-composed music, and I wish to use PayPal's merchant tools with a business account. I will run the sales process in the evenings.

Everything seems very straightforward, but I need everything to be above board - can anyone answer the following:

1. I am not running a registered business, can I take PayPal payments as an individual (i.e. to my name)? Is it easy to draw down income from PayPal once the orders start coming in?

2. Do I have to charge VAT? Or pay VAT? In fact, what is VAT? And does it apply to my line of business (music composition / entertainment)

3. What about other taxes, e.g. income tax? Do I need to inform my present employer, or should I contact the Inland Revenue directly?

Thanks

 

[caff]

Thanks

Yes, my annual turnover will be much lower than that, but I'll check with the IR.

I know nothing about accountants, and I'm not sure I can afford one - they're expensive aren't they? Is there any way I can get one-off advice, e.g. an hour of an accountants time? Or is that pretty standard?

As regards extra earnings - does this mean doing a self-assessment? Would the IR calculate the amount of tax I need to pay based upon the earnings I declare?

Sorry I'm a bit of a noob when it comes to money!