Hi all, firstly wanted to say hi and this looks an ultra useful site sowill waste alot of time on here!
I'm basically working full time, but in the process of setting up my own digital record label. I was wondering what tax I will need to pay. As obviously I will need to. I'm struggling online to find any useful information as most assume you are giving up work to become self employed, which is not the case with me.
With the business I dont expect to be earning a fortune and just wondered if there was any limit to which i could reach before paying tax, or whether I will need to pay tax on everything i earn.
The music will be sold via various online music stores, so they will be sending the roylaties directly to me. Should I be looking to keep some aside for a tax bill at the end of the year.
Sorry if these are mega bsic questions, I'm very new to all of this!
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If you set up as sole trader you will treat this as additional income earnt and you will need to complete a self assessment return. This will cover both your employment and additional business income. The tax you pay will be on your total earnings.

You will need to register with HMRC within 3 months of starting to trade.
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If you set up as sole trader you will treat this as additional income earnt and you will need to complete a self assessment return. This will cover both your employment and additional business income. The tax you pay will be on your total earnings.

You will need to register with HMRC within 3 months of starting to trade.

ahhh ok, so i guess the tax being paid by my employer will be fine, leaving me just the left over tax to pay for my extra earnings from the record label.
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yes you will pay both income tax and class 2 and class 4 national insurance.

Class 2 NI is ?.30 unless you income is low in which case use this to apply for an exemption:

http://www.hmrc.gov.uk/forms/cf10.pdf

Class 4 NI is paid on self employed earnings ?435 at a rate of 8% up to earnings of ?0040 when the rate changes to 1%
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Hi, I'm in the same position. Setup a home business, registered as self employed. I was successful in getting the NI exemptions certificate and my full-time PAYE tax has not changed. I cant say i'm looking forward to doing the self-assessment but the tax office have been very helpful so far. Go for it:) Dave
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These are very valid and important questions that routinely crop up for all newly self employed people and people thinking of becoming self employed.

Rather than spend hours trying to find the answers on-line the best thing to do would be to meet with an accountant who will be able to reply to all of your questions and give you lots of other advice which is really important at this stage.

Most good qualified accountants will give you a free intial consultation.

If you post on here your area you may find an accountant using this site who can help.

Nicola
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These are very valid and important questions that routinely crop up for all newly self employed people and people thinking of becoming self employed.

Rather than spend hours trying to find the answers on-line the best thing to do would be to meet with an accountant who will be able to reply to all of your questions and give you lots of other advice which is really important at this stage.

Most good qualified accountants will give you a free intial consultation.

If you post on here your area you may find an accountant using this site who can help.

Nicola

well my main worry with that is really my business is only going to be a really small one. I dont expect to make that much money at all with it, so wouldn't want to waste an accountants time as I'll probably handle the accounts myself once up and running. Its really just going to be a case of keep track of the in coming royalties and distrubuting them amongst the artists.
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go on the one day free HMRC course then. This will make sure you don't miss anything with your accounts and self assessment. There are loads of threads where I have posted the link to the courses so search around and you will find them
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