Tax Advice Please - can anyone help
Hi,
Im a new user to this thread having only passed my Technician level this year and wondered if anyone could help me with some information.
A friend has approached me for some advice & i wasnt sure what the answer would be?
He wants to set up a rock night as his local pub for which he will charge £2 entry.
He will have associated outgoing costs such as speakers/bands.
How is it best to handle the revenue?
Is he best off keeping records and submitting all revenue on self assessment form or is it best to set up as sole trader and offset outgoings against revenue and pay corporation tax?
Or is there another way and im missing it?
He already has a full time job & this is just a sideline but he wants to play by the rules.
Any help would be very gratefully received.
Thank you
Im a new user to this thread having only passed my Technician level this year and wondered if anyone could help me with some information.
A friend has approached me for some advice & i wasnt sure what the answer would be?
He wants to set up a rock night as his local pub for which he will charge £2 entry.
He will have associated outgoing costs such as speakers/bands.
How is it best to handle the revenue?
Is he best off keeping records and submitting all revenue on self assessment form or is it best to set up as sole trader and offset outgoings against revenue and pay corporation tax?
Or is there another way and im missing it?
He already has a full time job & this is just a sideline but he wants to play by the rules.
Any help would be very gratefully received.
Thank you
0
Comments
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Hi Toni
Is it your friends intention to use this as an ongoing trade with the intention to earn a profit, i.e do the badges of trade apply?
Or will he be doing this as a one off as a hobby and with no intention to earn a profit.
If the first then he needs to register as self employed within 3 months and he may well be able to claim exemption fro having to pay class 2 NI if his profits are going to be low.
If its a hobby then it is just that and no need to register. But I would recommend keeping day books
Poodle0 -
Hi,
Yes hes just intending to do it as hobby and there may not even be any profits, but hes just worried about other people who run similar nights reporting him to HMRC if he isnt paying tax0 -
Forgot to add, he is planning on doing it reguarly though, approx once every 2 months0
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I would say he will need to register as a trade. He would then pay BR tax on any profits and declare all incomes on a tax return. The good news is if it makes a loss then that loss can be offset against employment income to claim a tax refund.0
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He wouldn't pay Corporation Tax unless he actually set up a company.
If he did it as a Sole Trader he'd pay income tax and possibly NI and have to do a self assessment.0
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