What do do with new six

[LoobyLou2709]

We (myself and DH) have set up a little side business/income thing that has taken off quite well, It has no outgoings now that it's set up, but will take 12/18 months to start making a profit as we had to pay for things to set it up, generates about £1200-£1500 per month income, I was just going to put the income down on my tax return, but now wondering if this is the correct thing to do? Or do I set it up as a business and do accounts/books etc? I've never done anything like this before so completely clueless! Will the outgoings to set it up go against the income to pay less tax this year? We both have jobs and both are just under the higher tax band if that makes any difference. Any advice to a complete newbie when it comes to this sort of thing would eternally grateful ☺️

Not quite sure how the title of the thread got to this!!! Silly predictive text!! 🤦🏼‍♀️

You both need to register with HMRC as a self employed business partner, presumably with a 50/50 split. You will then need to complete a tax return each year. Assuming an equal split, you will both declare half of the tax years turnover each and half of the business expenses each. If there is anything that can be deducted from your PAYE you will receive a refund. Naturally if the business is in profit, then you will pay more tax.

All this is provided you have not set up a limited company. In any case, it is always best that consult with an accountant.