Hi,
I have a full time job, but I also make craft items to sell. I have been looking into the tax forms and it is so confusing.
I am worried that if I register for self employed but I also have another job that I would get emergency tax on my full time job.
I also live in a rented property from which I work on my crafts. I’m not sure how it would work with the tax form as I don’t know how it could be a business address.
Can anyone help?
You fill in the declaring your full time job and if you have any more tax to pay it will tell you and you send a cheque for that amount.
Your home address is you business address and your living address if you don’t have a separate studio address elsewhere.
I work from home so my home address is also my business address for the HMRC tax form.
I’m sure other’s will come along and explain it a bit better.
Once you register as self-employed, you will have to complete a self-assessment tax return each year in which you will declare your earnings from your full-time job and your earnings from your self-employed crafts business. The self-assessment return calculates any tax under/over-paid. It won’t affect your PAYE tax code for your full-time job, that will stay the same and you’ll continue to pay tax through PAYE just as you do now.
For your crafts business, you’ll need to keep records of money coming in from sales and money going out for materials, expenses, commission, paypal fees, insurance, overheads etc, so you can calculate any profits (or losses) made at the end of the tax year. You’ll only pay tax on profits, so keep receipts for all business costs and you can offset them against sales.
Your business address is your home address if you work from home, that’s quite usual.
I have part-time employment as well as being self-employed. My employment is considered my first job so is treated the usual way for tax. My employer has lots of people who work with them as their second job and they declare it as such and are taxed differently. Your tax with your current work should not be altered by you registering as self employed, it will only alter if you decide to tell your work it is your second job not your first. Your tax from your self-employment will be calculated when you do your tax return.
My home is my business address.
Don’t be afraid of tax return forms, a lot of the questions in there wont relate to you, so you don’t need to fill them in (unless you have a property in another country that you make money out of or something!!). All I tend to need to do, is put in how much I earnt and how much I spent and then it tells me if I owe any tax. Simples.
Thank you all. This really helps. At least I have a starting point now. Thanks.
@curiouslyheather
If you haven’t already, you will need to register on the Government Gateway. Then you can sign up for the services you need. For Self Assessment you will need to wait for an activation code which will take 7 days to arrive by post. The current tax year (2015/16) ends on 5th April. You have up till 31st January 2017 to submit your tax return electronically.
It’s all fresh in my mind because I was helping a friend do this last week, and I’ve been doing self assessment for myself for more years than I care to remember! 