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New project! Quick tax question?
EwanfStokes - 10/5/18 at 03:20 PM

Hi!

I'm a lead mechanic at a dealer local to where I live. I'm looking to help someone who's contacted me for help build their own, and they will pay me for help with getting it through IVA, building it all together, troubleshooting and the like. However I've also had people contact me about this before and was intrigued what the income I get from this would count as. I've looked at sites like this salary calculator (www.income-tax.co.uk)but there's no option to add secondary income or something like hobby income which I've heard people talking about recently. I'm intrigued if someone here has done something similar and could lend some advice?

Cheers!
Ewan

theduck - 10/5/18 at 03:32 PM

Enjoy - http://accountshouse.co.uk/newsletter/if-your-hobby-is-a-business-that-you-need-to-declare-to-hmrc/

tegwin - 10/5/18 at 03:39 PM

If you do everything by the book then you should register for self assessment tax return... enter in all your incomes and then pay the tax bill as and when it pops up minus any allowable expenses.

This is what I do because I am a sole trader.


If I were you and it is only a few hundred quid here and there I would not bother... but I wouldn't advertise that fact in writing on a public forum...

[Edited on 10/5/18 by tegwin]

EwanfStokes - 10/5/18 at 04:10 PM

quote:
Originally posted by theduck
Enjoy - http://accountshouse.co.uk/newsletter/if-your-hobby-is-a-business-that-you-need-to-declare-to-hmrc/


Is that link broken? I seem to get a weird page saying read error when I try to load it.

edit: nvm, works now! Thanks for that link

[Edited on 10/5/18 by EwanfStokes]

jps - 10/5/18 at 04:17 PM

quote:
Originally posted by tegwin
minus any allowable expenses.

And, based on my very limited experience having rented my flat out for a couple of years, this is the key phrase! I was pleasantly surprised to discover what counted as allowable expenses and therefore reduced the amount of tax I had to pay...

nick205 - 10/5/18 at 04:25 PM

quote:
Originally posted by tegwin
If you do everything by the book then you should register for self assessment tax return... enter in all your incomes and then pay the tax bill as and when it pops up minus any allowable expenses.

This is what I do because I am a sole trader.


If I were you and it is only a few hundred quid here and there I would not bother... but I wouldn't advertise that fact in writing on a public forum...

[Edited on 10/5/18 by tegwin]




Sounds like my way of thinking.