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At What Point Do I Need To Start Declaring Earnings And Paying Tax?

(4 Posts)
WordWeasel Fri 02-Sep-16 09:57:56

I'm employed (currently part-time) and so tax is deducted automatically. I've never filled in a tax form in my life because I've always been on a payroll.

BUT one of my hobbies has started to generate a tiny tiny bit of income. £270 for the whole of last financial year (although I think the money might not have been transferred to my account until the start of this financial year - I can't remember). This year, I'll make about £420, possibly a bit more. Should I be thinking about filling in a tax form? I know that people who make small amounts through eBay etc don't have to pay tax on it.

And if I do need to pay tax, WHEN do I need to act? I have zero clue about these things.

Thank you!

specialsubject Fri 02-Sep-16 14:25:28

As you are paying tax you are above the threshold and so need to do something. Good news is it really isnt hard.

Go to the government gateway and follow the procedure for registering for self assesment. It is a while since i did it but youll probably get sign on details in the post.

Once all set up, fill in the return on line. It really only takes about 10 mins with all the info to hand. The system works really well, honest!

Your deadline to do all this for the tax year ended 5 april 2016 is 31 jan 2017, so you have ages. But if you do it now it is all really quick. I submitted my return last saturday and the refund i was owed is already in my bank account. Do it now and it is done, and you wont be among the post christmas panickers.

Badbadbunny Fri 02-Sep-16 15:28:13

I know that people who make small amounts through eBay etc don't have to pay tax on it.

Yes they do. Even a £1 profit is taxable if your personal allowance is being used elsewhere, i.e. in your main job.

There is a new exemption for micro businesses on its way, but it doesn't apply for 15/16 nor the current 16/17 tax year.

TaIkinPeace Fri 02-Sep-16 15:31:05

THis page is a bit out of date as I cannot easily update it any more
talkinpeace2.blogspot.co.uk/2014/09/here-is-list-of-questions-i-most.html
but the gist of self employment rules, regs, tax law and the rest are all there ....

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