What do I actually have to do?

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Lizgwheat

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Feb 10, 2016
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Location
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Hello ladies

I wonder if anyone might be able to give me some advice please? I have read a number of threads but I'm still not 100% on what I need to do to set up my spray tanning business.

I currently work full time at the moment and am hoping to do mobile spray tanning on evenings and weekends but I'm unsure what I need to do in terms of tax.

Am I right in thinking I need to register as a sole trader? Do I need to pay tax even though I may not earn enough but because I work full time?

Any help would be much appreciated as I'm so confused!

Thank you x
 
Hi, what country do you live in?
 
Hello ladies

I wonder if anyone might be able to give me some advice please? I have read a number of threads but I'm still not 100% on what I need to do to set up my spray tanning business.

I currently work full time at the moment and am hoping to do mobile spray tanning on evenings and weekends but I'm unsure what I need to do in terms of tax.

Am I right in thinking I need to register as a sole trader? Do I need to pay tax even though I may not earn enough but because I work full time?

Any help would be much appreciated as I'm so confused!

Thank you x

Get in touch with an accountant they will be able to advise you.
 
Hi Jul'a, sorry I should have mentioned that bit. I'm in England. X
 
I think you will pay tax when your personal limit is exceeded, so for example if you earn £15,000 a year salary then you'll pay tax on every penny earned from your mobile but if you earn £5000 from your job you wouldn't pay tax on the mobile money until your income for the year mobile + salary exceeded £10,100 (or whatever the tax code currently is) does that make sense?

That's how I believe it works anyway you could just ask hmrc when you go self employed tho their very helpful x
 
https://www.gov.uk/check-income-tax-current-year

This link will help you

Also don't forget to keep all your receipts from all your products, advertising, leaflets etc as you will need these. You will be subtracting the total of your receipts from your earnings to find your profit, which may or may not be taxable.
 
Hi blossom and surf girl, that makes a lot more sense for me! Thank you very much! X
 
as said before:

Contact HMRC and tell them you want to work as a sole trader along side your PAYE job. They will then automatically ask you to send them in a tax return at the end of the tax year.

On the tax return you will complete the 'employed' section to show all the money you earned from your job ( PAYE) - this information will be on the form you get at the end of the tax year from your employer ( P60?)

Make sure you keep good record of your business spending ( receipts) and you business income ( what clients pay you). You will need to show this information on the 'self employed' section of your tax return. It may just ask you for a total ( business income minus business expenses ). This will be the profit you have made from your business ( it isn't usually much for a start up ).

Then ( as said above ) your PAYE tax code takes in to account your personal allowance so that will be used up, leaving you to pay a straight 20%(?) on your profit from the business.

( If you do go totally self employed then your personal allowance will be taken off your business profit, before the tax you owe is calculated)

Don't get confused by thinking you can pay your self 'wages' for your self employed business and count it as a business expense! - The amount of times I've seen that question asked!!!
 

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