Self employed with low income

[ViaRia01]

Hi
After some advice if anyone can help…?

if you are self employed and earn below the personal allowance threshold for income tax, do you simply have no interaction with HMRC or do you need to do the whole tax process anyway but just not have anything to pay?

yes you need to declare

are you in receipt of benefits?

Hi,yes you do have to fill in the self assessment every year. No one has ever checked my records or asked to see my receipts/ income book but yes you have to declare it.

Self assessment once a year. That might be all you do, in addition to keeping your business records.

You have to fill in a self assesment once your turnover is more than £1,000 per year.

Yes complete a Self Assessment every year. How much under the PA are you earning? You can transfer some of your PA to your spouse if you have one which will save them paying as much tax.

You have to register for self-assessment and complete a return if you earn, or expect to earn, more than £1,000 in a tax year. https://www.gov.uk/check-if-you-need-tax-return

Ok right that is really useful and makes sense. I haven’t yet earned any money and the ‘business’ is not in profit. It just seemed a lot of effort to set up self assessment etc when I don’t even know yet whether or not the work will pick up. Good to know about the £1000 thresholds, thanks everyone.

No, not in receipt of any benefits. ----

are you currently in employment?

It's no effort at all to set up. It's literally opening an account online with your name address and NI number.

You probably input more of you order something online.

Then the self assessment is easy too as long as you are keeping your business records properly and recording all income and outgoings.

@Spirallingdownwards thanks that’s good to know.
I’m making and selling a craft, at the moment it’s on a very small scale. hoping to launch online soon and start actually marketing it a bit so hopefully orders will increase over time

@speedmop no, not currently employed. No passive income. No income in my name whatsoever at the moment.