Results 1 to 24 of 24
  1. #1

    UK Inland Revenue Tax

    Hello all. I recently bought a "Virtual Private Server" a.k.a "Virtual Dedicated Server". I wish to resell some of the space/bandwidth to cut the costs. However, I am wondering If I have to pay TAX. I am in the UK by the way.

    Regards
    Last edited by smsmasters; 04-05-2004 at 06:01 AM.
    SmsMasters.co.uk - The latest technology news and information updated daily. Online since 2002.

  2. #2
    Join Date
    Jan 2004
    Location
    South East U.K.
    Posts
    1,295
    What sort of tax were you thinking of? Income tax, VAT?

  3. #3
    I'm not sure. I just heard that you must register with Inland Revenue for tax or something, since webhosting is taxable I assume?
    SmsMasters.co.uk - The latest technology news and information updated daily. Online since 2002.

  4. #4
    Join Date
    Apr 2002
    Location
    West Yorkshire
    Posts
    1,357
    Hello,
    It is. If you are running this as a business (Which you will need to) then you will need to pay Tax on your earnings and also National Insurance which will probably be 2 pounds per week.

    There are some allowances on the tax which you can discuss with them.
    -- Matthew

  5. #5
    Join Date
    Jan 2004
    Location
    South East U.K.
    Posts
    1,295
    If you're going to be running this as a business (sole trader) you need to inform the Inland Revenue within (I think) two months of starting the business.

    I think you need to be talking to your local tax office, I think they can actually be quite helpful!!

  6. #6
    Join Date
    May 2002
    Location
    UK
    Posts
    2,994
    If you are making revenue (even at a loss) you must declare it in a tax return. Even if this revenue is below your personal tax free allowance. Use the online forms and it calculates it immediately and tells you if you owe anything and how much.

    Registering to submit a tax return either by paper or online (if you've only ever paid tax by PAYE before) can take a few months of letters and codes backwards and forwards so plan early! If you are a director of a company you MUST submit a tax return regardless.

    You have until the End of Jan next year to declare and pay your taxes for Apr 2003-Apr 2004

  7. #7
    Originally posted by Rich2k
    If you are making revenue (even at a loss) you must declare it in a tax return. Even if this revenue is below your personal tax free allowance. Use the online forms and it calculates it immediately and tells you if you owe anything and how much.

    Registering to submit a tax return either by paper or online (if you've only ever paid tax by PAYE before) can take a few months of letters and codes backwards and forwards so plan early! If you are a director of a company you MUST submit a tax return regardless.

    You have until the End of Jan next year to declare and pay your taxes for Apr 2003-Apr 2004
    Do u know the link to see the online form?
    SmsMasters.co.uk - The latest technology news and information updated daily. Online since 2002.

  8. #8
    What happens if i dnt register tax?
    SmsMasters.co.uk - The latest technology news and information updated daily. Online since 2002.

  9. #9
    I dont plan on running this as a business. Just a small reseller in order to pay off costs.
    SmsMasters.co.uk - The latest technology news and information updated daily. Online since 2002.

  10. #10
    Join Date
    Dec 2002
    Location
    England
    Posts
    726
    Originally posted by smsmasters
    I dont plan on running this as a business. Just a small reseller in order to pay off costs.
    You still have to register, even if you are only talking small amounts to pay off costs, the form is here : http://www.inlandrevenue.gov.uk/startingup/register.htm

    Also you might like to read http://www.inlandrevenue.gov.uk/pdfs/pse1.htm which has some answers to common questions aswell as helpline numbers.
    Last edited by bagpuss; 04-05-2004 at 07:19 AM.

  11. #11
    How much do I have to pay. I selected "self employed" and less than 4000 earnings per annum.
    SmsMasters.co.uk - The latest technology news and information updated daily. Online since 2002.

  12. #12
    Is it true one has to pay 50 to register?
    SmsMasters.co.uk - The latest technology news and information updated daily. Online since 2002.

  13. #13
    Join Date
    Dec 2003
    Location
    UK
    Posts
    652
    Tax will be on your profits, less any legitimate expenses.

    VAT Threshold is around the 45K turnover mark, you don't need to register unless you expect to exceed this.

    Talk to your local tax office, they should have a small business person who can advise.

    If in doubt talk to an accountant.

  14. #14
    So it isn't 50 to register as a self employed sole trader, and TAX is calculated by a percentaeg from my profits?
    SmsMasters.co.uk - The latest technology news and information updated daily. Online since 2002.

  15. #15
    Join Date
    Jan 2004
    Location
    South East U.K.
    Posts
    1,295
    Take a look at this if you haven't already done so, might answer some of your questions -
    http://www.inlandrevenue.gov.uk/startingup/index.htm

  16. #16
    Join Date
    Dec 2003
    Location
    UK
    Posts
    652
    Talk to the Inland Revenue or a qualified business adviser / accountant. You should be able to get all the info in leaflets / downloads from then IR website, if not seek professional advise.

    If you screw up, then the Inland Revenue will investigate, consuming a lot of time and effort on your part.

    Personally I wouldn't take tax advise from a public forum like this.

  17. #17
    Join Date
    May 2002
    Location
    UK
    Posts
    2,994
    Originally posted by smsmasters
    What happens if i dnt register tax?
    The form isn't really online, it's a website that generates, fills in and submits the form equivalent for you. Go to http://www.inlandrevenue.gov.uk for more info.

    If you don't register for tax AND you don't declare earnings AND they catch you, you could be liable for a hefty fine.

    Bear in mind companies doing business with you will be declaring payments to you on their tax returns so it is traceable.

    As mentioned above don't rely on us for tax advice, either see an accountant or read the Inland Revenue website and guidance notes. Give them a call they are quite helpful. I'm not sure how much financial advice they give but they are helpful about tax return filing.
    Last edited by Rich2k; 04-05-2004 at 09:09 AM.

  18. #18
    I've had a read and it says I have to pay 2 week for National Insurance. What the hell is going on?
    SmsMasters.co.uk - The latest technology news and information updated daily. Online since 2002.

  19. #19
    Join Date
    Dec 2003
    Location
    UK
    Posts
    652
    Please Talk to a specialist !

  20. #20
    Does anyone like to share some experiences with Inland Revenue?

    Thanks
    SmsMasters.co.uk - The latest technology news and information updated daily. Online since 2002.

  21. #21
    Join Date
    Dec 2003
    Location
    UK
    Posts
    652
    My mate's an inspector dealing with company fraud ! You probably don't want to hear these stories :-)

    However, most IR forms are simple to complete these days, keep a few simple rcords using a basic book keeping program (I use an old version of Quicken) and you can pull off most (if not all) data for the forms with a few clicks.

    Complete all the forms honestly and pay what's due on time and you'll have no problem.

  22. #22
    Join Date
    Apr 2002
    Location
    West Yorkshire
    Posts
    1,357
    Originally posted by smsmasters
    I've had a read and it says I have to pay 2 week for National Insurance. What the hell is going on?
    Thats just standard.
    -- Matthew

  23. #23
    Join Date
    Jan 2004
    Location
    South East U.K.
    Posts
    1,295
    Originally posted by smsmasters
    I've had a read and it says I have to pay 2 week for National Insurance. What the hell is going on?
    This years rate for Class 2 National Insurance contributions is 2.05 / week

    It's just the self-employed equivalent of the National Insurance contributions you'd see on a PAYE pay slip (I think).

    As others have said, talk to your local tax office or an accountant

  24. #24
    Join Date
    May 2002
    Location
    UK
    Posts
    2,994
    Yep talk to an accountant. However if your already paying NI through PAYE (in another full time job) you may already be paying your max NI contributions.

    However please take what we say with a pinch of salt, I'm not an accountant and most of us here probably aren't accountants or legal experts on tax. I just fill in my tax return online and let the Inland Revenue calculate it all for me.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •