Just to complicate matters a bit further .....
It is not clear from your post whether the £960 figure is per week, per month or per year.
You would normally pay income tax on your profit (not sales) and, as you seem to have a regular income from other employment, you will already be paying tax at 20% on earnings
over the personal allowance which from April 6 will be £11,850. If adding your profits to your wage pushes you over the higher rate threshold, which from April 6 will be £46,350, then you will pay 40% just on the amount over £46,350.
Note you can claim an allowance of £4.00 per week against "home office" expenses without producing any documentation to support it. If you want to do the paperwork then you may be able to claim a higher amount.
If your
sales (not profit) exceed £85,000 per 12 month period, then you must register for VAT. This means you can claim back the VAT you pay out but must charge VAT on (taxable) sales. If you are selling to other VAT registered customers then it may be worthwhile registering even at a lower figure. If you are selling to the public then try and avoid it as it will dent your profits.
On the other hand, if you are a micro business and the £960
sales figure is per year, then you are under the £1,000
sales (not profit) threshold the Government introduced
and do not need to eit her register with HMRC or pay any tax on the micro profits.
There you go ---------- Clear as mud! :biggrin:
