Monday 20 July 2009

Income from websites

Mate, need some advice,
Got a large problem at home, My darling is puking up every morning, I’ve had an accident and we’re expecting Jack and Jill to arrive in about 9 months time. Mate, I need additional income now. If I start earning money from a baby nappy rash website, I have setup in my spare time, will I have to pay tax and NI on that income? I am also employed full time on a salary of £125,000 a year.
Yours ever so grateful, Lucky Lucky Daniel M


Congratulations Danny
You should register your new web business with the tax office as a self-employed business. We can help you do this if you wish. Your self-employment will not affect your
employment, and your employer need not know about your website business. However, you will have to complete a tax return each year to declare all of your income; from your
business, employment and any investments. By registering as self-employed you will also be automatically registered to pay class 2 NI in respect of your self-employed profits. If these profits are expected to be less than £5,075 for the current year, you should complete form CF10 which is a request for exemption from paying class 2 NI.

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