Ads

Collapse

Announcement

Collapse
No announcement yet.

Help! TAX when you already work Full time?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Help! TAX when you already work Full time?

    Hi,

    We're trying to sort out all of our Tax but whenever we talk to the tax office they get all confused because we work full time and do Buttonberry in our spare time. Is anyone else in the same situation?

    Lisa xx
    eat, sleep, breathe, STITCH!
    www.buttonberry.com
    www.buttonberry.co.uk

    Blog-tastic
    buttonberry.typepad.com

  • #2
    I don't know if this thread covers your question?

    http://www.craftsforum.co.uk/showthr...rong#post32846
    Blog Website Flickr

    Comment


    • #3
      Thanks JBJB, i'll look!
      eat, sleep, breathe, STITCH!
      www.buttonberry.com
      www.buttonberry.co.uk

      Blog-tastic
      buttonberry.typepad.com

      Comment


      • #4
        I am in the same situation as you. Basically I was told that as long as I don't earn over something like £64k a year in total, I don't have to pay tax (so think I'm safe!). In terms of NI, you can apply for exemption as long as you don't earn more than about £4600 (I think, check that figure though) a year. When you register as self employed they send you a form to apply for an exepmtion certificate. Hope this helps!
        Katian Mosaics

        ♥ My Ebay Listings ♥

        My Facebook Page

        Comment


        • #5
          Hi,

          Yep I'm in the same boat and agree as long as you don't earn over a certain limit it wont affect your tax from the day job. You still pay NI but if you don't earn over £4K I think it is you can apply for a small earners exemption and you don't need to pay class 2 NI.

          Hope this helps.

          Cheers.

          Lisa

          Bowed Over
          Handmade Dog Collar Accessories
          www.bowedover.co.uk

          Comment


          • #6
            Originally posted by katian_krafts View Post
            I am in the same situation as you. Basically I was told that as long as I don't earn over something like £64k a year in total, I don't have to pay tax (so think I'm safe!). In terms of NI, you can apply for exemption as long as you don't earn more than about £4600 (I think, check that figure though) a year. When you register as self employed they send you a form to apply for an exepmtion certificate. Hope this helps!
            No no no no no.

            The £64k turnover is the VAT registration threshold - the point at which you have to register for VAT.

            If you work full time, then you can register to not pay NI on your self-employed earnings, but they will all be eligible for Income Tax, because you will have used your personal allowance in your employed job.
            Melanie


            "When I talk about belief, why do you always assume I'm talking about God?" Serenity


            http://www.myspace.com/kandmcreations
            http://www.kandmbeadshop.co.uk/ | http://www.kandmcreations.co.uk/
            http://kandmcom.etsy.com

            Comment


            • #7
              Originally posted by mjbelkin View Post
              No no no no no.

              The £64k turnover is the VAT registration threshold - the point at which you have to register for VAT.
              Yep .. That the VAT threshold ... Nothing to do with income tax..


              The second you register as self employeed your tax code changes in your full time job and dependant on how much you make it will effect the tax on the job BUT its nothing to worry about..
              .


              Promote your craft site today : Add Your CRAFTS
              (£5.50 a month or £50 per year)

              Fun new blog: Snowboard Stuff

              Comment


              • #8
                Originally posted by 0103media View Post
                Yep .. That the VAT threshold ... Nothing to do with income tax..

                The second you register as self employeed your tax code changes in your full time job and dependant on how much you make it will effect the tax on the job BUT its nothing to worry about..
                Gosh they are useless, that's not what they told me. When I rang for advice they told me exactly what I stated. Grrrrr!!!! So if my tax code chages, does that affect how much tax I pay? E.g. will I pay more?
                Katian Mosaics

                ♥ My Ebay Listings ♥

                My Facebook Page

                Comment


                • #9
                  My friend works full time for a company. She has recently took over a business as well which makes her the owner. She is curently paying 40% tax on the second income!

                  Not sure how it works really but get as much advice as you can, the tax man always always gets his money in one way or another!

                  Always take advice off a registered accountant keep yourself right and avoid a possible hefty payout down the line.

                  Self employed = bookkeeper for the goverment!

                  Julz

                  Comment


                  • #10
                    When I got in touch with the tax off they said not to worry as I wouldn't be earning enough from my self employment for it to affect the employed tax. However I obviously still need to fill in a tax return for the self employed portion so they know how much I should be paying..

                    Cheers.

                    Lisa
                    Bowed Over
                    Handmade Dog Collar Accessories
                    www.bowedover.co.uk

                    Comment


                    • #11
                      Originally posted by candles by lisa View Post
                      When I got in touch with the tax off they said not to worry as I wouldn't be earning enough from my self employment for it to affect the employed tax. However I obviously still need to fill in a tax return for the self employed portion so they know how much I should be paying..
                      Make sure you do your accounts very carefully Lisa and put down the costs/expense for every bit of material, postage, milage to craft fairs etc that you have spent. If you do that and find out that you've actually made a loss then you'll get a tax refund which cynical ole me thinks is why the tax office seem to be telling people in your situation that you don't need to worry about it all.

                      Edited to say that milage can really cut down your profit (and tax) - at 40p a mile even the weekly trip to the bank in town was nearly £150 in expenses for me last tax year, start adding trips to suppliers and craft fairs and it really adds up.
                      Last edited by nattynetty; 02-07-2007, 12:13 AM. Reason: missed a bit
                      Visit Natty Netty for a huge selection of Iris Folding supplies

                      Comment


                      • #12
                        Thankyou!

                        Blimey it's a complicated caffuffle isn't it? Thank you to all of you who replied i was a little worried since the Tax office seemed to be pretty darn useless! I resorted to writing a letter in the end!

                        I have been keeping a note of everything so far so i should be able to do all my sums when the time comes too (Didn't think about petrol for things though so will make sure i do that!)

                        Thanks again guys xxxxxxxxxxxxx
                        eat, sleep, breathe, STITCH!
                        www.buttonberry.com
                        www.buttonberry.co.uk

                        Blog-tastic
                        buttonberry.typepad.com

                        Comment


                        • #13
                          Originally posted by nattynetty View Post
                          40p a mile
                          Is that what you charge then for petrol - I've made a note of all my mileage but had no idea what you were supposed to charge for it.....
                          Blog Website Flickr

                          Comment


                          • #14
                            40p is what the tax man 'allows' you for petrol expenses per mile to get to a non-permenant place of work.
                            http://icecreambird.blogspot.com/

                            Comment


                            • #15
                              Originally posted by icecreamgirl View Post
                              40p is what the tax man 'allows' you for petrol expenses per mile to get to a non-permenant place of work.
                              It depends on how many miles you do in a year. After 10000 business miles (IIRC), you can't charge the mileage at the same rate.
                              It's never too late to gyrate!

                              Comment

                              Working...
                              X