Register as self employed & tax

[Mumofoneandanotherontheway]

I’m planning on starting a online business mostly through social media. I will be selling clothing from overseas. I don’t think it’s going to be a big business it for me to pass my time at home while I’m a stay at home mum.
I heard you don’t have to register as self employed if your earnings are not going to be over £14k. Also how to go about paying tax, again I was told there’s a threshold. I don’t know if any of this is true and want some advise.

Many thanks x

YABU. I don't know where you heard that but don't believe everything you hear. You have to pay tax on earnings over £12500 in the current year. Your profit is what you would be taxed on. You also have to pay Class 4 NIC on earnings over £8632 and Class 2 NIC on earnings over £6365. (All figures from the current tax year).

So you can earn much less than the £12500 and still have to pay NIC.

www.gov.uk/log-in-file-self-assessment-tax-return/register-if-youre-self-employed

Yes you have to register within 3 months of trading. You will have to do a tax return even if you are below the threshold. It's simple and quick to both register and file a return though.

You have to declare your earnings if you earn more than £1000

www.gov.uk/income-tax/how-you-pay-income-tax

My part time business brings in anywhere between £7000 and £10000 per annum and I've been registered for tax for about 6 yes now.My expenses are quite high so I rarely pay much tax.I work in a very competitive industry where there's a high chance of malicious reporting so it was easier to register.The sa process is fairly painless and you can carry losses over which is great when you have a profitable year.

I should add that I also work for an employer part time so I'm over the tax threshold.

"You must also fill in a tax return if you earned more than either:

£1,000 from self-employment
£2,500 from other untaxed income, for example from tips or renting out a property"

Please, please (and I mean this very sincerely) do not believe ANYTHING with regards to tax unless it is from the gov.uk website (or a professional adviser although, to be honest, some of them spout crap as well so be careful!)

The idea you don’t have to register if you’re earnings are not going to be over £14k is absolute nonsense. If you are found to be trading and not registered then HMRC can and will charge penalties for failure to notify and will do so retrospectively.

Good luck with your new business.

Sorry - your not you’re. Sigh.