How much do you earn before you are taxed?

[Leahlash]

I'm doing an eyelash extension course and hoping to make a bit of pocket money doing extensions for friends and family at a reduced price to begin with. Once I'm confident I am looking to start a mobile beauty business that will fit part time around my two boys.
When do I need to tell revenue & customs about my plans? How much annually do you have to earn before you are taxed? Do I need to let them know I'm doing friends and family for a few months before I start properly or just from when I advertise to the public?
Any advice welcome
Thanks

 

[Vetty]

You need to tell HMRC within 3 months of setting up and you need to declare everything you earn even when you're practising. The amount you can earn before tax is £8105 but you still need to complete a tax return if you're profit is less than that.

The best thing to do is go on a Becoming Self Employed course run by HMRC - free and very useful!

 

[Leahlash]

Thank you- so if I don't earn more than the 8k a year I don't have to pay anything?
We get a small amount of child tax credits- will this be affected even if I don't earn the 8k?

 

[kezza*]

I thought it was about 5k you earn before you get taxed?

 

[kezza*]

Thank you- so if I don't earn more than the 8k a year I don't have to pay anything?
We get a small amount of child tax credits- will this be affected even if I don't earn the 8k?

Not sure how tax credits work you'll have to ring them.

 

[Lucy-Jayne]

You need to register with HMRC within three months of starting your business.

You will need to make a profit of £8105 or over to be paying tax. As Vetty said, even if you earn less, you will still need to complete a tax return.

You will also need to pay national insurance contributions - an invoice for which will be sent on a 6 monthly basis from HMRC after you have registered with them.