Turn on thread page Beta

Starting an online business offering online services. How will it be taxed? watch

    • Thread Starter
    Offline

    2
    ReputationRep:
    What kind of things I should watch out for. I'm starting new with 0 experience. Is there anything I need to apply for?

    Will happily rep anyone who is willing to help
    Offline

    19
    ReputationRep:
    Would depend on whether you're a limited company or not, you'd have to pay corporation tax if you were. Or you can register with HMRC as a sole trader, and you'll pay income tax on your profits.

    Whats best for you will largely depend on your current finances and how successful the business is, though I would recommend you look into registering as a sole trader.
    Offline

    18
    ReputationRep:
    If you're serious.... look it up yourself. Browse and make mastery of the .gov.uk information available on their website. And. Get an accountant / speak to an adviser.

    You pay NI contributions if you make over 4.5k (or something like that). If you make less, you apply for NI exemption.

    Should profits (PROFITS not revenue) exceen personal tax free allowance (10.6k moving to 11.6k) then you everything above 10.6k is hit at an additional tax rate.

    e.g. you make 12k profit this year.

    you pay NI
    you pay tax on 1.4k (12k-10.6k)

    that is as a sole trader. as a limited company you will pay more but have the co. name reserved.
    Offline

    19
    ReputationRep:
    Just open a PayPal business account and you never have to worry about the rest. The tax you accordingly like ~5% of each transaction. I know this because I run an on-line business myself, been doing so for about a year now. I run a freelance programming service. Also you can look into using bitcoins too for your transactions.
    Offline

    3
    ReputationRep:
    (Original post by Async)
    Just open a PayPal business account and you never have to worry about the rest. The tax you accordingly like ~5% of each transaction. I know this because I run an on-line business myself, been doing so for about a year now. I run a freelance programming service. Also you can look into using bitcoins too for your transactions.
    PayPal do not tax you...
    Offline

    19
    ReputationRep:
    (Original post by Push_More_Button)
    PayPal do not tax you...
    By tax I also mean fee. Interchangeable words.
    Offline

    3
    ReputationRep:
    (Original post by Async)
    By tax I also mean fee. Interchangeable words.
    They are in absolutely no way interchangeable. You're paying a fee to PayPal for their payment processing service. You pay taxes to HMRC, which if you're a sole trader is income tax and national insurance.

    If you don't pay PayPal they won't allow you to use their service, if you don't pay your taxes you're breaking the law...
    • TSR Support Team
    Offline

    19
    ReputationRep:
    TSR Support Team
    (Original post by Push_More_Button)
    They are in absolutely no way interchangeable. You're paying a fee to PayPal for their payment processing service. You pay taxes to HMRC, which if you're a sole trader is income tax and national insurance.

    If you don't pay PayPal they won't allow you to use their service, if you don't pay your taxes you're breaking the law...
    What will you do about it? Willful ignorance and all...
 
 
 

2,872

students online now

800,000+

Exam discussions

Find your exam discussion here

Poll
Should predicted grades be removed from the uni application process
Useful resources

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Write a reply...
Reply
Hide
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.