F/T job + earning other income - tax questions etc

[bramley]

Hi, I'm in full time employment and am trying to make some money out of photography outside the 9-5 job.

I'm not sure what I need to do regarding tax etc. Do I need to ring someone to tell them about the position I'm in - who? Everything will be 100% above board, my employer is fine with me doing photography work and I want to start off on the right foot with regard to tax and so on.

Any help is greatly appreciated.

Cheers

[Eric Mc]

Wot he said

[bramley]

Thanks folks

[bramley]

haworthlloyd1 said:

eric mc will be along but i think you need to register your business interests with hmrc within 3 months of commencing trading and fill out a self assessment form at the end of the tax year. ensure you keep all receipts and details of expenditure etc.

Erm, just supposing I knew someone that had kept all their records but hadn't registered with hmrc within 3 months (more like 6) would that person be in trouble?

[Eric Mc]

Yes - automatic £100 fine plus a request to pay the backlog of unpaid Class 2 Self Employed National Insurance.

[Vesuvius 996]

bramley said:

haworthlloyd1 said:

eric mc will be along but i think you need to register your business interests with hmrc within 3 months of commencing trading and fill out a self assessment form at the end of the tax year. ensure you keep all receipts and details of expenditure etc.

Erm, just supposing I knew someone that had kept all their records but hadn't registered with hmrc within 3 months (more like 6) would that person be in trouble?

[bramley]

bks!

[bramley]

Spoken to tax office, seems I may well be heading for a £100 fine - off to a good start then! Apparently i can appeal against it but not sure if my (genuine) excuse of being given bad advice from a friend would be sufficient. I have a mate how also does extra work outside of his full time employment (all above board) and he told me to keep records of invoices etc and as long as I contacted the tax dudes before the end of the financial year that would be ok

[Vesuvius 996]

bramley said:

....not sure if my (genuine) excuse of being given bad advice from a friend would be sufficient............

Shall I give you a clue?

[Eric Mc]

You may NOT be liable to Class 2 NI. If your net TAXABLE profits from Self Employment are EXPECTED to be below the Lower Earnings Exception limit (£4,825 for tax year 2008/09) then you should not be liable to pay any Class 2 NI. That MIGHT get you off the £100 penalty - and it will certainly get you off having to pay any Class 2 NI.

[bramley]

Vesuvius 996 said:

bramley said:

....not sure if my (genuine) excuse of being given bad advice from a friend would be sufficient............

Shall I give you a clue?

Thanks Eric - I called them back again and that's more or less what they said.