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Selling Resources & Income Tax

Discussion in 'Tes Authors' Group' started by Brabanski, Jan 9, 2017.

  1. Brabanski

    Brabanski New commenter

    Hello,

    I am seeking a bit of help with how to file a tax return at the end of the tax year 16/17 that is approaching. I am a full time teacher, therefore is selling resources classed as a second income? I have searched the FAQ section, however it is quite confusing and some information contradicts. Do I need to create a gateway account through HMRC (I thought this was just for self-employment?) or do I simply declare my extra income using an online form at the end of the tax year?

    TIA,

    From a very stressed out seller!
     
    mrajlong likes this.
  2. Tes_Natalie

    Tes_Natalie New commenter

    @Brabanski I've just dropped you an email following your message to us at the weekend. Hope it's helpful :)
     
  3. thinky

    thinky Occasional commenter

    In my previous employment (I'm now self employed) I also did consultancy work that was additional to my employment and had to register as self employed. For that I completed a tax return and then could choose to have the additional tax deducted from my employer's salary (you're then sent a new tax code).

    I *think* from next year you're allowed to make up to £1k tax free as a 'micro entrepreneur' trader, but above that will need to be declared.

    I'm not sure that's the case for this year though! The best thing is to give HMRC a call or alternatively you might get some luck asking for accountancy advice over at the UK Business Forums.
     
    mrajlong and mathsmutt like this.
  4. mathsmutt

    mathsmutt Star commenter

    Hi @Brababnski,

    My understanding is that all income should be declared and I would suggest registering as a sole trader,
    but you would have to keep records and expect to complete a tax return. Online is straight forward - particularly if done before September.


    HMRC https://www.gov.uk/new-business-register-for-tax , https://www.gov.uk/set-up-sole-trader
    https://www.gov.uk/topic/business-tax/self-employed
    https://www.gov.uk/expenses-if-youre-self-employed
    https://www.gov.uk/self-employed-records
    https://www.gov.uk/keeping-your-pay-tax-records

    Otherwise, you inform HMRC about how much you have earned and they change your tax code accordingly.


    Taxation of small businesses may well be changing this year.
     
    mrajlong likes this.
  5. mrajlong

    mrajlong Established commenter

    Just completed my first tax return for selling on TES. Used an accountant though as my other half is also self-employed. Bit depressing considering the VAT already paid and of course commission. All this means I only get approx 50% of the resource sale value, but not much I can do about that :(
     
  6. Brabanski

    Brabanski New commenter

    Thanks for all of this information! It is really appreciated. When I try to set up an online account, it asked for a gateway ID - what is this?

    mrajlong - any extra pocket money is better than none I guess, but you're right, it is quite depressing :(
     
    mrajlong likes this.
  7. Rott Weiler

    Rott Weiler Star commenter Forum guide

    .
    @Brabanski Before you can use most government online services you first have to create an online "Government Gateway Account". Once you have created your account you are given a gateway user ID, and that's what you then have to use to access specific services such as HMRC self assessment.

    https://www.gov.uk/government-gateway
    .
    .
     
    mathsmutt, mrajlong and thinky like this.
  8. Brabanski

    Brabanski New commenter

    Thank you! Really helpful - I had been searching for a while!
     
    mrajlong and mathsmutt like this.

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