How much money can you earn in the UK before you have to declare it to the tax man that you are self employed?

Question

We are thinking of starting up our own business since my partner lost his job last month and we have had an excellent response to our leaflet drop. Now we want to know how much we can earn before we have to declare our business/income to the tax man as we've only been doing small jobs for the last week and a half.

Answer 1

you have to be in a business - so can even make a loss and need to make a declaration.

Answer 2

What other earnings do you have? Because you must be living on something. By the way - refurbishing old comps is hard to make money from. All earnings are declarable - so if you are self employed you MUST register for Self Assessment. All it takes is one unhappy customer or a jealous competitorr to report you.

Answer 3

Make a declaration. If you are not earning much then you may not incur any tax liability but to be sure you should declare. It may be worth you speaking to an accountant. I know your business is just beginning and it may seem and expensive option but they can save you a lot of money.

Answer 4

Rates and Allowances - Income Tax
Income Tax Allowances 2006-07 (£) 2007-08 (£)

Personal allowance 5,035 5,225

Personal allowance for
people aged 65-74 7,280 7,550

Personal allowance for
people aged 75 and over 7,420 7,690

Income limit for
age-related allowances 20,100 20,900

Married couple's
allowance * (aged less
than 75 are born before
6th April 1935) 6,065 6,285

Married couple's allowance
- aged 75 and over 6,135 6,365

Minimum amount of
married couple's
allowance 2,350 2,440

Blind person's allowance 1,660 1,730


Tax relief for the married couple's allowance is given at the rate of 10 per cent.

Taxable Bands
Taxable Bands Allowances 2005-06 (£) 2006-07 (£)

Starting rate 10% 0 - 2,090 0 - 2,150
Basic rate 22% 2,091 - 32,400 2,151 - 33,300
Higher rate 40% over 32,400 over 33,300


Rates and Allowances -Corporation Tax
Corporation tax on profits - £ per year (unless stated)

Rate 2005-06 2006-07
Starting rate: 0% £0 – £10,000 N/A*
Marginal relief £10,001 – £50,000 N/A*
Small companies’
rate: 19% £50,001–£300,000 £0 - £300,000
Marginal relief £300,001–£1,500,000 £300,001–£1,500,000
Main rate: 30% £1,500,001 or more £1,500,001 or more
Non-corporate distribution rate 19% N/A*

*The 2005 Pre- Budget Report announced that the starting rate and non-corporate distribution rate would be replaced with a single banding for small companies set at the existing small companies' rate.

Answer 5

does not matter how much u earn got 3mth to tell the tax man u r self employed best get a accountant dont cost that much mine only charged me 200 a year well worth it can save u loads

Answer 6

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