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View Full Version : quick question...small income.


ffureel
20-02-2006, 04:07 PM
I know someone who is thinking of doing a very small amount of work, small design/logo stuff and is predicting only earning like 20 -30 a month from it. Should she still need to inform the IR and become self employed? If she did it seems most of the earnings would go into NI contributions or would it be exempt?

Im not sure what to advise but I was thinking probably she should register as self employed.

aj9648
20-02-2006, 04:16 PM
20-30 per month would not make her liable for any tax or NIC


Ridwan

Rachael
20-02-2006, 04:36 PM
She'd still have to register as self employed within Three months or she'd get a fine. Whether it makes her eligble for tax or not the tax man needs to be aware she's working for herself.

Iain
20-02-2006, 04:52 PM
I know this is off topic, but I just had to say how amazing I thought your photography and retouched photos were ffureel :)

Widgey
20-02-2006, 05:38 PM
She would need to register with the inland revenue and then apply for national insurance and tax exemption, due to low earnings!! This is for earnings less than 4895 which if I'm not mistaken is the current personal/basic allowance. But remember if she is employed as well, her employed work will more than likely use up their basic allowance and therefore may need to pay tax and NI on everything.

All the best

Paul

natasha
20-02-2006, 05:39 PM
Originally posted by Iain
I know this is off topic, but I just had to say how amazing I thought your photography and retouched photos were ffureel :)

wow they are amazing, now i know why all the women in the mags look to good to be true!!

I didnt even realise that when you roll the mouse over them it switches to the before photo.
Really good pictures!

fionabailey
20-02-2006, 05:55 PM
If she is only going to be earning 20-30 a month she is seriously undercharging for designs!

Inzvestor
20-02-2006, 09:17 PM
Originally posted by paulmorrissey
She would need to register with the inland revenue and then apply for national insurance and tax exemption, due to low earnings!! This is for earnings less than 4895 which if I'm not mistaken is the current personal/basic allowance. But remember if she is employed as well, her employed work will more than likely use up their basic allowance and therefore may need to pay tax and NI on everything.

All the best

Paul

As far as I understand it, their employment and sole trader status are 2 separate entities.
You need to opt-out of NI contributions if you are earning less than the figure above in your sole trader status.

You will complete 2 returns. 1 for your sole trader business and 1 for your personal tax (taking into account your employment)

I would recommending bending the ear of an accountant for an hour (or less) and get them to set you on the righ path for your requirements - as all our future needs are different.

I'm not a tax specialist and as such always seek advice where this is concerned.

ffureel
21-02-2006, 04:28 PM
Originally posted by fionabailey
If she is only going to be earning 20-30 a month she is seriously undercharging for designs!

Like I said she will be doing very little work, very irregular, mostly one off stuff.

Thanks for your help, I think Tax should be made easier but I will send her to an accountant for sure.

Oh and thanks for the compliments on my site :-)

fionabailey
21-02-2006, 08:45 PM
Even a single logo design should cost more than that though if she is any good...