The Wholesale Forums

[Jasoncmor]

Hi guys.
I have a few small questions.

Im looking for a job at the moment, (I have an interview tomorrow, woo). THat will be a full time job, but If I wanted to start off small making a little extra on the side, how would I go about that.
Finding the suppliers, selling the goods isnt the problem, Its the income tax that im confused on.
I would automatically be paying income tax out of the money I earn from my full time job, but how would I pay income tax for anything I sold ?
Is there a limit you can earn before you start paying income tax on selling goods ?

Thanks

[hardwareheroes]

Your personal allowances will already be used against your full time income so you will have to pay tax on ALL of the profit you earn from your self-employment.

You need to tell the Inland Revenue within 3 months of starting up in business.

They will issue assesments of your profit at the given time and it is your job to maintain books and records and fill in your tax return annually detailing the money you have earned so that they can tax you on it.

[greedyboy]

In other words, you will become slef employed for your private trading and employed/PAYE for your day job.

[Jasoncmor]

Thanks for your replies.
So I would keep track of everything I sell in a year, and I get taxed at the end of the year ?
Would I need to register a company name or something, if so how?

Thanks

[bdehaan]

As well as keeping track on what you sell, best keep cash reserves to pay the tax - otherwise an unwelcome bill at the end!

[barricades]

It's important to remember in the UK (correct me if I'm wrong please) that your tax is due after the second year. In other words you submit accounts for 06/07 at the end of 07/08 so your first year is kinda 'free' but you'll get hit for tax the next year - so remember about that when you're thinking about cash flow.