Tax for self-employed.

[abhinay]

This is directed towards an accountant really. I am 16 and going to have a supplier who i source my products from soon. I am going to sell using ebay. And because i don't own the products (i am dropshipping)etc... i have to register as a business account. After reading up on this, there are a few tax things you have to do as a business, ie pay tax on money you earn etc...

from ebay: The amount and type of tax you should pay on your eBay earnings depends on how much you earn and how you earn it.

To do this i have to register as self-emplyed with HMRC. Are there any restrictions when doing this? ie age. Also, i am still at school, will this be a problem? Are you allowed to be classed as self-employed when 16?

Any help on this would be greatly appreciated.

Thanks,
Abhinay.

[m8internet]

None, just register with your local Tax Office
Contact details are in the phone book

[lfrier]

You can register as self employed by:

Completing a form available at:

http://www.hmrc.gov.uk/forms/cwf1.pdf

Calling: 0845 9 15 45 15

or using the interactive form at:

www.hmrc.gov.uk/selfemployed and select ‘register as self-employed’

If you expect your business income from 6/4/2008 to 5/4/2009 to be below £4,825 then you can opt not to pay Class 2 National Insurance contributions.

Hope this helps

Linda Frier
Coalesco Accountants
www.coalesco.co.uk

[abhinay]

thanks for the help guys. I am expecting the first year business income to be less than you have said, but what if it goes over that during the year? Also, by business income do you mean net profit or turnover?

And i understand that by registering as a business on ebay, any money that you earn, you have to pay income tax on, i am very new to all this, so do you know any accountants that you can recommend? If you are an accountant then can you give me a quote please? I am also interested in someone that can help with bookeeping.

Thanks again,
Abhinay.

[Peter W]

It is your expected business income that is important, rather than your actual income. And it is based on your net profit rather than your turnover.

Are you looking for an accountant local to you? If so, where are you based?

[abhinay]

Thanks for that peter. Yes i am looking for an accountant based near me. I live in Mansfield, Nottinghamshire.