2 replies to this topic

[signature16]

I have been doing business "under the table" for sometime now, and for the most part I really haven't made a significant amount of money. I am now starting to increase my "under the table" money.

I have NO prior business experience, or really much work experience at all but I am getting ready to reach my early 20's and I don't want to have a tax situation.


What do I have to do to start a business a report my income? Where do I start researching? What should I start doing?

[greg]

For starters, begin keeping track of your earnings and expenses. When tax season comes around, go to H&R Block or any tax service and they'll explain everything to you.

I don't think you need to file any papers if you're just running a personal business.

[AaronM]

For UK business:

First of all you will need to register on the HMRC website to be self employed, you can print a PDF form off there website.

All you need to do then is to keep receipts/invoices for everything that you buy and also invoices for ever bit of money you make. The more organised you are through the year the easyier it is at year end.

At the year end you will need to file your self assesment, this will include how much money you have made and how much you have spent out. You will then be given a bill or a refund for tax and NIX purposes.

If you earn under £5030 in one year then you can get a lower NIC deduction rate.

I would allow 25% off everything you earn to be put away for year end, chnaces are it will be well under that so you wil have a nice bit of cash at the end of the year.

Hope that helps.