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Hey everyone, im looking to release my website in the near future which im hoping will generate some revenue to help me in uni; however as this is my first venture with an e - business, my first business venture in fact im not sure about finances and things; am i required to get "vat registered" etc and all these legal terms ? i need to read into it an awful lot, but if i was to make say 10£ a day would i not be required to pay x amount tax?

 

If anyone has any expertise in this field it would greatly help me out, thanks

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In a nutshell...

  • You do not have to be registered for VAT if your turnover is less than £67,000.
  • Your personal tax allowance is £5,435 of which you do not pay tax on.

 

So providing you have no other source of income, you would not pay income tax on your earnings, or have to be registered for VAT. You will however, have to register your business with Her Majesties Revenue & Customs (HMRC) as you will be liable to pay Class 2 National Insurance.

 

There are a couple of websites that may be of use to you...

  • direct.gov.uk
  • hmrc.gov.uk
  • businesslink.gov.uk

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I'm not sure what the rules are for students, but I can't imagine you are 100% tax exempt; you're probably just on a different tax code with some form of lower tax rate.

 

If you are a student and running a business, I wouldn't have thought that you would get any special treatment otherwise everyone would take up night-classes at college/university to classify them as a student, to claim the same benefits.

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