Sideline webdesign and the tax man

tedaC

tedaC

tedaC

Associate
Joined
26 Apr 2006
Posts
710
Hi all,

If i am working full time say £25-30k a year. Then i start doing a bit of webdesign on the side, say £400 per month.

What would i need to do tax/money wise etc... ?

Do i have to be registered as having a second job ? (just a little confused)

If it was just cash in hand, i wouldn't be too fussed, but i am having to send out invoices and wouldn't like to have Mr taxman chasing me.

Thanks

tedac
 
Best to speak to an accountant tbh! £400 per month is £4800 per year, this will not take you over the 40% bracket. You would probably have to register as self employed at the very least, and you would have to fill in tax returns. As to how, I personally have no idea!
 
Become VAT registered so you can claim VAT on your expenses, take all revenue in cash, and don't charge your customers VAT. Then start paying cash for 50% of everything leisure-related that you do like meals, food, pub, golf, etc..
 
Robbie G said:
Become VAT registered so you can claim VAT on your expenses, take all revenue in cash, and don't charge your customers VAT. Then start paying cash for 50% of everything leisure-related that you do like meals, food, pub, golf, etc..
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Ignore this :p

Just register with the taxman as self employed. Keep all records of invoices to customers and any receipts relating to expenditure you incur while doing the webdesign.

After the financial year end (5th April 2012) you can input your self assessment online and you fill in both the Employed section (using your P60) and self employed section and it will work out what Tax & NI you will owe.
 
Freakbro said:
Ignore this :p

Just register with the taxman as self employed. Keep all records of invoices to customers and any receipts relating to expenditure you incur while doing the webdesign.

After the financial year end (5th April 2012) you can input your self assessment online and you fill in both the Employed section (using your P60) and self employed section and it will work out what Tax & NI you will owe.
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Pretty much this.
 
Check your current employment contract to - many don't permit you to do another job at the same time or require management approval first.
 
Cheers for the advice guys, much appriciated.

Will give the taxman a call :(

Good point about checking my contract, someone else had mentioned this to me before.


Thanks

tedaC
 
MofoKilla said:
Only accept readies for such a small ammount each month ?
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Don't do this!

the HMRC have an entire division of investigation for the "blackmarket", i worked there once, and these guys do not have a sense of humour.

the will investigate, you, all of your customers, all of their customers, and so on. they do not muck about.

if you want to. just try and expense it all with tax deductibles. but its just easier to pay the tax like you are suppose to.
 
Robbie G said:
Become VAT registered so you can claim VAT on your expenses, take all revenue in cash, and don't charge your customers VAT. Then start paying cash for 50% of everything leisure-related that you do like meals, food, pub, golf, etc..
Click to expand...

Oh dear. I hope that's a joke!

1. Register as self employed and save 25% of everything you earn (for tax and NIC)
2. Enjoy filing out self assessment each year.
 
Terrier_Jimlad said:
Don't you have to have an income of £65,000 a year to become VAT registered? Doubt he's going to reach that target earning £400 a month is he?
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You can register voluntarily at any point, which people sometimes do because:

a) It can make people believe your business is larger than it is
b) They know they are likely to be close to the threshold and would rather register ahead of time than forget about it and suffer penalties
c) They produce zero rated goods so they don't charge VAT, but they use taxable supplies and thus have to pay VAT to their suppliers, and they would like to recover that VAT
 
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Pudney@work said:
Nope, you can't claim VAT back on your exempt supplies! Zero rated is still a VATable supply.
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Ah, FFS. It's been too long since I did VAT.

Still, 2 marks for the other 2 reasons for registering for VAT when you don't need to.

Take note, kids, VAT is hard.
 
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