U.K. Tax help

[sellom]

Hello

I have run a small business in the uk, from home (sole trader) for 15 months, in my first year all profits went back into the business but I am now going to keep some of the profits (e.g. my wage)

I also have a full time job where I earn £21,500 annually.

I am brand new to this. I was wondering if I am eligible to be paying tax / the amount I should pay / do I need an accountant / who do I contact to start paying and anything else I need to know.

Thank you all

 

[doxterrr]

@sellom Yes, you need to

1) Pay income tax and also class 4 NI.
2) Fill in a tax return each year

Bad news is that you have missed the deadline and will owe £100.

Personal allowance of £11,500 has already been used by your employment you see.

I would call the tax office asap. How much are we talking about roughly?

 

[sellom]

@doxterrr I made just over £4000 last year not including outgoings of about £3000 and this year starting January I'm up to about £200 (I have only started logging where everything is going from this year because my first year nearly all profits went back into the business / will go back into the business for growth)

 

[doxterrr]

@sellom I would give the tax office a call and ask about doing the 'short tax return', you have to keep basic records too. You will probably need a business bank account too.

I know its a pain but after you are set up you can be free to earn as much as you like!

If you made £1000 profit you may have to pay £200/300 plus late fee of £100 sorry.

Also check local library, town and civic centre for a free business advice service.

Here is a tax and self employed combined calculator:

https://www.employedandselfemployed.co.uk/tax-calculator