Quizzes & Puzzles0 min ago
Extra Income
4 Answers
Hello,
I am considering giving piano lessons for a bit of extra cash.
I have a full time job as well. Would I have to declare my extra earnings to the tax man, and if so would I have to set up a business account?
Thanks
I am considering giving piano lessons for a bit of extra cash.
I have a full time job as well. Would I have to declare my extra earnings to the tax man, and if so would I have to set up a business account?
Thanks
Answers
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No, you don't need to set up a business account.
Just keep a record of your income. You will have to make a Self-Assessment return to HMRC, on which they will calculate the tax due.
As the above suggests you can offset some expenses against your taxable income. Seek further advice from HMRC, and not my job to give you financial advice, but look closely at what you can claim in mileage rate if you visit customers to give lessons, things like servicing/tuning your piano, and claiming household expenses - which from memory is �3 pw without having to justify it in receipts. All helps.
Just keep a record of your income. You will have to make a Self-Assessment return to HMRC, on which they will calculate the tax due.
As the above suggests you can offset some expenses against your taxable income. Seek further advice from HMRC, and not my job to give you financial advice, but look closely at what you can claim in mileage rate if you visit customers to give lessons, things like servicing/tuning your piano, and claiming household expenses - which from memory is �3 pw without having to justify it in receipts. All helps.
Just to add the advice in the previous two posts is absolutely sound.
Yes you have to pay tax on your earnings giving lessons (subject to deduction of certain qualifying expenses).
No you don't need to otherwise change your banking arrangements one bit. I do a bit of book-keeping away from my main job (properly taxed) but I just use my normal current account for it. as long as your business costs are identifiable and your records adequate (spreadsheets are fine) then there's no problem.
Yes you have to pay tax on your earnings giving lessons (subject to deduction of certain qualifying expenses).
No you don't need to otherwise change your banking arrangements one bit. I do a bit of book-keeping away from my main job (properly taxed) but I just use my normal current account for it. as long as your business costs are identifiable and your records adequate (spreadsheets are fine) then there's no problem.
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