How will my UK Side Hustle get taxed?

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  • Опубліковано 13 тра 2024
  • If you're running a small business in your spare time then you will want to consider how your second income will get taxed. This tutorial includes what you need to do and by when as well as a quick calculation to determine how much tax you will have to pay.
    Need help with your tax return?
    bit.ly/utr-number

КОМЕНТАРІ • 52

  • @admirald2680
    @admirald2680 3 місяці тому +2

    Well explained and super useful - thank you Adam Hill 😀

  • @sravat1234
    @sravat1234 5 місяців тому +16

    Uk is finished

    • @1DREAMA
      @1DREAMA 4 місяці тому

      Word get me outta here

    • @MrJikser
      @MrJikser 4 місяці тому +1

      Uk has gone down hill

    • @KoushikMandol
      @KoushikMandol 3 місяці тому

      Not needs gorment📱📱🇮🇳🇮🇳🇮🇳📺📺📺📺📺📺📺 west bengole🕉️🕉️🕉️🕉️🕉️🕉️🕉️🕉️🕉️🕉️😊😊😊

    • @KoushikMandol
      @KoushikMandol 3 місяці тому

      L. A. W sudunt kings👑👑👑👑👑👑😊😊😅

  • @anumsheraz
    @anumsheraz Рік тому

    Well explained.thanks

  • @samanthahardy9903
    @samanthahardy9903 Рік тому +2

    I thought the national insurance was payable based on turnover not profit.Thank you for the info.

  • @jimbobg9062
    @jimbobg9062 9 місяців тому +2

    but if i say its "my used stuff from home" then im good until £6000?
    asking for my mate🤐

  • @north584
    @north584 2 місяці тому +2

    Most teenagers PlayStation 5 and skateboards cost over a £1000 secondhand. What next, you have to declear all birthday card money from your grandparents as a taxable income! The U.K. is a total cesspit of poverty and destitution, the government makes the poor, poorer!

  • @aestheticsmotivation8153
    @aestheticsmotivation8153 Рік тому +2

    If you started working in may 2022 and haven't previously worked,( age 19) when do we start paying tax/ have to report our income?

  • @mictache
    @mictache 9 місяців тому +1

    Thanks for the great work with this video 😊
    not sure if you've covered this in a previous video, but what kind of company (LTD?) would I need if I were to plan on starting a youtube channel, maybe sell digital/physical products in the future? And under what SIC number/nature of business?
    Thanks in advance

    • @tax2ulimited
      @tax2ulimited  8 місяців тому +1

      The Ltd company can be a good option for a UA-cam channel but typically it would be more beneficial once the channel is more established and generating a significant income as it might allow for better tax planning. In which case 59112 would usually be an appropriate SIC code. Most of our clients who operate in this field usually start trading as self employed due to the simplicity and flexibility that’s offered. Remember you can always switch to a Ltd company later if it makes sense. To declare your income from youtube channel as Self Employed, all you need is a UTR number, you can apply here bit.ly/utr-number

  • @LucySBeauty
    @LucySBeauty Рік тому

    If my side hustle is bringing me loss then I don’t have to feel the tax docs but if I’m employed would that loss trigger a tax return from my employment?

  • @patricia8878
    @patricia8878 Рік тому

    I am 67 years old and receiving my pension and I already have 36years NI payments. I continue to teach privately and I have a holiday let do I have to pay national insurance and if so which one? Class 2 or Class 4? and would that be on the basis you have outlined in your video?

  • @chrisroberts5562
    @chrisroberts5562 4 місяці тому

    When you say 1000.00 turnover does that include the postage if you sell on ebay?

  • @littlelegsjodie5703
    @littlelegsjodie5703 Рік тому

    Hi hello
    Please may I ask
    If one was running a prize competition website
    where i would be buying more prizes every week to be won or every day
    May I ask what is your thoughts about how this tax will be calculated at the end of a year
    and if i was a limited company
    would I be self-employed in this limited company as a director or would I be an employee of the limited company as a director owner
    Thank you for any reply
    Kindest thoughts
    and wishes

  • @user-rs6wo8yk1z
    @user-rs6wo8yk1z 3 місяці тому +1

    Are there any tax deductible expenses people can claim?

  • @williambyers
    @williambyers 5 місяців тому

    okay so im full time employed for a company. But need to do self assessment for freelance work. Is it correct I do it from a business tax account? Or personal tax account? If that is even possible? Is there a difference? and can I do it via personal tax account? I registered for utr through business tax account is that correct?

  • @user-rs6wo8yk1z
    @user-rs6wo8yk1z 3 місяці тому

    I've got no option to register as an individual. Only trust or partnership...any suggestions?

  • @georgewhatley4749
    @georgewhatley4749 Місяць тому

    hi, what happens if you havent tracked your expenses? are you taxed on the full amount?

  • @lawrencer25
    @lawrencer25 Рік тому +2

    £1000 a year = about £19.75 a week

  • @yurekandsnakes
    @yurekandsnakes Рік тому +3

    So, when you say your regular job is 30k and side business profit is 30k, is the 30k from your regular job what you take home on your wage slip which includes deductions such as NI, pension, student loan etc. And the 30k side business is your profit after deductions such as materials, energy etc has been deducted? Thanks in advanced. My regular income is 52K, so anything I earn in my side business is taxed at 40%!

    • @user-ot7jd9dt7t
      @user-ot7jd9dt7t Рік тому +1

      So if you're jobs allows you to buy tax deductible materials and equipment you can scale and expand your business then pay the remainder of your tax until its big enough to where you can pay 40% tax and it would not affect you as you would be minted effectively

  • @darrenelkins5923
    @darrenelkins5923 11 днів тому

    The main reason for that is…

  • @cobbler40
    @cobbler40 3 місяці тому

    The Tax system is very complicated !

  • @yusufdemirer
    @yusufdemirer 4 місяці тому +2

    How far they can check the income from Vinted or eBay ?

    • @tax2ulimited
      @tax2ulimited  4 місяці тому

      If HMRC investigates, far enough

  • @chantelhargreaves7643
    @chantelhargreaves7643 3 місяці тому

    Hi, I am a little confused. so the £30K from the side hustle was that amount the turnover or the profit after you had deducted business costs?

    • @tax2ulimited
      @tax2ulimited  2 місяці тому

      Turnover means total sales, not the total profit

  • @cobbler40
    @cobbler40 3 місяці тому

    Contact HMRC ?

  • @paulsaleh1817
    @paulsaleh1817 Рік тому

    Why does the additional £30k fall into the 40% bracket? That part confused me

    • @rjfb973
      @rjfb973 Рік тому +1

      It doesn't 10k of it did

    • @user-ot7jd9dt7t
      @user-ot7jd9dt7t Рік тому

      Tax is marginalised, roughly 11k is tax free, 11k - 28k for eg is taxed at 20%, 28k - 40k is 40% this is an example

  • @doddford
    @doddford 2 місяці тому

    Am I right in thinking that, if you can show that the government is using your taxes to break the law, you can claim exemption?

  • @cobbler40
    @cobbler40 3 місяці тому +1

    HMRC seem to have infinite resources to get money from ordinary people trying to make a little extra.

  • @ACIDGameReviews
    @ACIDGameReviews 4 місяці тому

    What if you did it only temporarily and it's not an ongoing thing. And it's not even a business and just selling personal items.

    • @StuartSime
      @StuartSime 4 місяці тому

      still applies if over 1k per year. cause people that can change jobs within a year still need to declare certain the different salarys of both jobs

    • @tax2ulimited
      @tax2ulimited  4 місяці тому

      Yes it still applies, for any sales over 1k. If you need more help just sends us an email to info@tax2u.co.uk and we can provide a competitive price.

  • @joe3142
    @joe3142 Рік тому

    You said class 4 NI drops to a lower rate if you earn over the base rate threshold - when you say earn here do you mean self employed income or total?

  • @robhingston
    @robhingston Рік тому

    So if I worked for Uber eats and earned under £1000 a year I would need to register

  • @cobbler40
    @cobbler40 3 місяці тому

    £1000 stays at £1000 it doesn’t rise with inflation.

  • @Dj_Fushen
    @Dj_Fushen 4 місяці тому

    U need better barber bro 😎💡💯 good to see ur doin some online stuff!

  • @LR52VUU
    @LR52VUU 2 місяці тому

    You maybe earning £100,000, but your business is operating at a loss.

    • @tax2ulimited
      @tax2ulimited  2 місяці тому

      yes that can also happen and then you report a loss, that can be roll into next tax year