At what point does this turn into a job?

OrganisedPauper

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At what point does this turn into a job? When does it cease to be pin money and become an income? Are any of you registered self employed and how do you get on with it all? I've been self employed a couple of times, but this stuff is all new to me. When should we start declaring this?
 

Jon

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OrganisedPauper said:
At what point does this turn into a job? When does it cease to be pin money and become an income? Are any of you registered self employed and how do you get on with it all? I've been self employed a couple of times, but this stuff is all new to me. When should we start declaring this?

Err yes

I would hope everyone is unless they want to get into trouble with HMRC
 

RedAlix

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You should declare your business from day one even if you aren't making any money. You could risk a fine if you don't register.

Its really easy to do. I registered by phone, the lovely people at the tax office were more than helpful.

Just because you register doesn't mean you are all of a sudden bombarded with tax bills. You will be sent a tax return at that time of year. If you aren't making much and self employment is your only job then chances are you won't be paying tax. If you do have another job or are making quite a bit then you should remember to put some money away to cover your tax bill. If you aren't confident with doing your own tax return you could get an accountant. Its one more expense but they do the job you may not like and can possibly save you tax.
 

Jon

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My self employed tax is actually setup to come out of my main job tax. If just gets added onto what they take each month out of my salary
 

OrganisedPauper

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Hiya, as I said I've been self employed before. I don't think it's justified to register as self employed if you're getting the occasional voucher. Having to do annual tax returns and dealing with national insurance, small earnings exemption and what not for the odd voucher seems overkill to me. When it starts looking like a regular income of sorts I can see that it is a business.
 

alundra

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I think it probably turns into a job when you can make a decent living out of it. It really depends on what you do. I don't make more than £60 a month, so not a job for me, but some of the people on the green site make £600 - £1,000 a month doing PTCs, surveys, and various things.
 

Blackpepper1

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It does depend how regular the income is and how much. Also if you are self employed what you earn is not all profit anyway there is a certain portion of your petrol/heating and your telephone bills and also anything you buy computer wise to use for your business. If you bought a smartphone/laptop/computer/tablet for your self employment purposes then these all come off your profit as far as tax goes.
So the tax you pay as a self employed would be less if anything after all costs are taken off the amount you have received over a year.
 

The Funky Blue Dog

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I believe that when you are registered as self-employed, you need to be able to demonstrate that your income is obtained from multiple sources and that none of these sources is heavily over-represented. It's a bit hard to explain and I'll probably need to check the current guidelines.

In my case, I am self-employed providing professional services on an irregular basis (and no, not that kind of service if that's what you're thinking ;)). I work as a locum, but I have to be careful not to work for any employer too often or the HMRC can accuse them of avoiding NI and tax contributions by not putting me on their payroll. I try to spread myself around so that I'm invoicing several employers, and as I'm personally paying NI and tax the revenue isn't missing out.

I wonder whether issues could arise with any of the bigger home-earning opportunities? Eg if you did a lot of work for 63336 or Lionbridge, or even spent the whole day on Swagbucks, and they were your main source of income - could the HMRC get fidgety do you think? Maybe if you can demonstrate that you are bringing in various forms of income (even in the form of vouchers) from a range of survey/PTC sources etc, this could work in your favour? But I've not thought about it that deeply to be honest
 

Jon

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Don't think I have ever had to prove all the different jobs I do to HMRC as such.

I just fill in what I earn from the various methods and that's it.

Like I have already mentioned they take any tax I am due to pay them from my self employed work from my main job.

If all you do is self employed and you earn under the threshold (£8k a year I think) then you don't need to pay any tax anyway
 

Chammy

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I wanted to try and give home baking a go, I registered as self employed as soon as the EHO gave my kitchen the go ahead but I never actually traded. I closed that the other day while doing my tax return, as I didn't earn anything I also had a NI exemption certificate.

I rang up today to let them know I was self-employed again with me working for 63336. I am setting up a direct debit for my NI contributions and if I earn enough to pay tax I will put that away into a savings account ready for next years return. Though this is my work, I have no plans to be employed so declaring it is a must for me.
 

Jon

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Why are you paying NI? Are you not filling in the exemption? That's what I do and keep my earnings as self employed under that level

http://www.hmrc.gov.uk/forms/cf10.pdf

However I am probably going to blast through that total this year
 

Chammy

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I'm hoping to go over the limit for an exemption plus I want to contributions towards pension, maternity allowance etc I don't want to be told in 30/40 years time that I didn't chip in enough to get my pension...if it still exists then that is ???
 

Jon

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Ah, got ya, fully understand!

I am really am going to blast through that allowance this year I think though within a matter of months

... will deal with it after I have done last years return
..... after I have got my p60 from my main job
 

The Funky Blue Dog

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Chammy said:
I'm hoping to go over the limit for an exemption plus I want to contributions towards pension, maternity allowance etc I don't want to be told in 30/40 years time that I didn't chip in enough to get my pension...if it still exists then that is ???

I agree with you Chammy - even when eligible for the exemption it's worth paying it anyway, as big gaps in NI contributions could really hurt your pension. Probably not worth the risk for the sake of a few quid a month.

And fingers crossed you'll be earning plenty soon so the exemption threshold will be a distant memory ;D
 
D

DeeBee

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Jon@TheMoneyShed said:
If all you do is self employed and you earn under the threshold (£8k a year I think) then you don't need to pay any tax anyway

You have to earn £10k before you start paying tax.
 

Chammy

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Yorkshiremeerkat said:
Eight hours a day that is when it becomes a job' otherwise just a good hobby

I do no where near 8 hours a day but consider what I do my job ;)
 

usa1

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OrganisedPauper said:
At what point does this turn into a job? When does it cease to be pin money and become an income? Are any of you registered self employed and how do you get on with it all? I've been self employed a couple of times, but this stuff is all new to me. When should we start declaring this?

I mainly earn shopping vouchers or amazon codes, surely no-one declares them. I know I don`t -
 

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