Do you buy and sell regularly on line?

If so, you may be trading, and you may need to contact HMRC to disclose any undeclared trading income from previous years.

HMRC are not interested if you are clearing out your loft and getting rid of things you don’t want any more, but it is targetted at companies and individuals who regularly acquire items to sell at a profit online.

You have until 14th June to come forward if you think it applies to you. If you log onto HMRC’s website, they give you a list of questions and answers to help you decide whether or not you may be trading. Otherwise contact your accoutant for further help.

This blog was written by Lorraine Dale from Rightway Accounting Services. Do contact Lorraine for more information or if you need clarity on any of the points.

Tax Calculations

Worried about how much tax you need to pay?

If you would like a quick and rough response, you can log onto HMRC’s website and click on the Calculators and Tools tab.

In there is a self employed ready reckoner which will allow you to enter your expected net income (ie sales less expenses) to work out roughly what you can expect to pay in tax and Class 4 NI.

Bear in mind this does not take into account any other income you have, and if this is your first year of paying any tax, you may well need to pay double the amount, as you need to pay upfront for next year.

It will also not include any loss relief you may have if you have made a loss in a previous year.

This blog was written by Lorraine Dale from Rightway Accounting Services. Do contact Lorraine for more information or if you need clarity on any of the points.