Will I have to charge tax?

[johnny7]

I am planning to start a website and was thinking of making it possible for shops and businesses in my local area to advertise job vacancies and place ad banners across the site for which I will charge. I'm not a registered company, just an individual doing this as a hobby. I'm not up on the whole tax thing; will I have to charge tax for advertising job vacancies and banners? Will I have to register as a company before I go ahead and do this project? Any help would be appreciated.

[hc4361]

You will not have to charge VAT until your annual sales reaches �67000.
You will have to register as self employed though, even if you have a paid job elsewhere.

[johnny7]

Nice one. thanks hc

[terambulan]

You dont have to register as SE if you have a paid salary. This is a new enterprise and income will need to be declared to IR at end of year.

[Skyline D]

That's completely wrong termabulan. You MUST register as self employed if you are trading as an individual or partnership. You have to inform the HMRC within three months.

Whether or not the OP has another paid job is compeltely irrelevant to the issue.

VAT will, as previously pointed out, not be a factor unless you are very quickly turning over a lot of money.

Potentially self employed National Insurance will be payable at �3 a week or whateer it is these days but if you are seriously playing at it then a de minimis limit applies and no NI is payable. You need to apply for exemption though.

You do not need to be a company to trade, you can do it in your own name or as a partnership but either way it will have to be properly registered and it fundamentally doesn't make a lot of difference which route you go down.

[philm09]

Skyline D is correct, any income must be declared and is liable for tax contributions. You must register as self employed. Look on the business link website, they also have lots of free courses you can attend which gives you all of this advice.