Extra cash while working

What shouldI do with it?

[curlykarl]

Hello all :)

I’m looking for a bit of advice?

I am happily employed full time (UK) but have recently started taking on side jobs, and also a bit of affiliate marketing. The thing is I’m starting to see a reasonable return lately, and I’m getting a little paranoid about Tax, V.A.T and all the other mundane stuff.

I was wondering if anyone could give an insight as to what to do with the extra cash, should I register a company, or can I just declare the extra money through my wages?

What do I do about billing people, at the moment its just a url I have as a made up company name, home address and mobile number etc

I just don’t want to get stung with a Tax bill

Thanks

Karl :)

[Longhaired Genius]

If you're making extra money, of course you're going to "get stung" with a tax bill. You don't have to register a company, just declare the income as self employment income.

The best place to go to for free advice on this is your local Inland Revenue office. Seriously.

[George]

You local Inland Revenue office will give you a form to fill in.

Best advice I have is to marry a good Accountant :)

[mack]

You can look at this from the other point of view. Declaring your income also allows you to declare your expenses.

That way you will only be taxed on net as opposed to gross. sometimes it is worth becoming a sole trade and filling your books acordingly.

Mack.

[curlykarl]

Thanks for the replys :)

just declare the income as self employment income

Can I be employed as well as being self employed, it seems rather odd, I thought you had to be one or the other?

Best advice I have is to marry a good Accountant

She's a Bus Driver :)

Declaring your income also allows you to declare your expenses

I had thought about that, maybe I'll be be to able to buy myself new toys every year.

Karl :)

[benihana]

im in exactly the same position - make sites all day for P.A.Y.E and freelance in the evenings -ive just sent my first invoice off.

if you goto the inland revenue site there is a phone no. for the 'newly self employed tax advice line' - they should see you right.

ben