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Thread: Students and tax?
17-05-2010, 10:52 PM #1
Students and tax?Please note these ads will not show for registered crafts forum members.
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I'm a full time student so money's a little bit tight. I've been considering selling some of my crafts to bring a little bit of extra money in so I don't have to start living on Super Noodles and rubbish like that haha. I'm not expecting to make loads of sales or masses of profit, so I'm just wondering if registering as self employed and all that bumph is worth it.
The questions I have at the moment are:
- how will being self-employed affect my student loan (in terms of the amount I can get)? I don't want to find myself with a much lower loan and not be making any profit from my crafts.
- what tax will I have to pay? I'm assuming I'd have to pay tax on my self employed earnings (whereas I don't if I'm employed by a company), but is the rate different for students?
- does selling on somewhere like Etsy still require you to be self employed?
Any other current or previous students out there who have any advice/stories to share with me? Or anyone who can point me in the right direction on the HMRC website?
Sorry for all my stupid questions, I have no idea about tax and stuff as up until now I've never had to pay it or even think about it, so I have no idea what I'm doing!
Last edited by IzzyBee; 17-05-2010 at 10:54 PM.My craft YouTube channel: http://www.youtube.com/izzybeecrafts
17-05-2010, 11:13 PM #2
Selling is selling so you will have to be registered. Student loans they will ask you for a spreadsheet or proof of income and base it on that.
this should help
if not just give them a ring they are really helpful
if you don't register and get caught its a fineVickie
My Lampwork site http://www.beads4breakfast.co.uk
My jewellery sitehttp://www.spiderpixie.co.uk
My jewellery facebook pagehttp://www.facebook.com/pages/Spider....2918347303..1
My Lampwork fanpage.http://www.facebook.com/pages/beads4...2937438?ref=ts
17-05-2010, 11:46 PM #3
Thanks . I thought it would be the case that I'd have to be registered for any kind of selling, but I just wanted to make sure so I didn't go and register and find out it was all unnecessary! Getting a fine would be the last thing I need right now, especially when the idea is for me to make a bit of money to ease my money worries, not to make money only to have it all (and probably more) taken away from me!My craft YouTube channel: http://www.youtube.com/izzybeecrafts
21-06-2010, 11:14 PM #4Senior Member Super crafter
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If you are a self emloyed student, you will have to fill in a self assessment at the end of the tax year. You can earn around £6,400pa before paying tax.
another link for youBead Shop, 91 Liverpool Road, Penwortham, Preston, PR1 0QB, Lancashire. Mon-Fri 10am-5pm, Sat 10am-4pm, Sunday 11am-3pm.
23-06-2010, 03:28 PM #5
chances are a new business (unless you're a VERY successful new business) wont pay any tax in the first year given the above amount you can earn without tax and the total personal allowances (i.e. tax deductions like stock, computers, cars if used, home and bills if used etc etc) so I wouldnt worry too much but it's always a good idea to register and fill in a return just in case.
I've said it before on different threads but I cant recommend highly enough the free courses the HMRC provide on being self employed and filling in tax returns. They're free!!!! and very practical - if you're not financial minded tho, get a good accountant who will ensure you're tax return is correct and you dont end up paying money you dont have to.
Think you'd still be liable for NI contributions tho altho these can be claimed back at the end of the year if you earn under a certain amount.
Hope this helps! I'll be in the same boat in september as well!Precious(has the biggest web-presence ever- check out all my links I have more than they will allow in a sig!!)
Precious Creations website
Precious Creations facebook page
Artisan Website design at low cost! and my personal website (same link)
My twitter: @precioustweetie (from there you can link to my blog Preciousbuzz provided by blogspot!)
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