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jeppe
01-20-2014, 02:51 PM
Hi,
Im under 18 living in the uk and I repair Idevises (ipods, iphones) and want to offer my service online. I have registered a domain name and im about to set up the website. I have no experience in online business and need some advice. Do i have to register as a business or can i do this without? Do i have to pay taxes for my service? How do i pay taxes? I have no experience in this area, so if you have any info on this please let me know.
Thanks
Jeppe

AliceT
01-20-2014, 03:44 PM
You should check your local laws regarding home based businesses. Some countries do not require you to set up as an "official" business and charge taxes until you make a specific dollar value, others require you to set up as a business immediately if you are intending to make an income. Your age may also be an issue, but this could be as simple as having a relative sign for you. Ask your relatives if they know any bookkeepers or accountants - perhaps you can score some free advise. Most are quite willing to offer advise to someone starting out in the hopes that they can get work from you after you start making money.

All income you make will have to be accounted for at tax time. If you do not have a registered corporation, then this will be entered on your personal income tax form.

Remember to keep track of every penny you spend on setting up your business, as these amounts will/may become deductions at tax time whether you register your company or not.

Also consult your local bylaws regarding home based businesses. The bookkeeper/accountant you speak with should be able to provide information on this.

Don't let all the legal/business stuff discourage you, and don't ignore it. It is easier to take care of things in the beginning, before you start, rather than paying penalties later.

P&T Consulting
01-21-2014, 07:48 AM
Hi,
Im under 18 living in the uk and I repair Idevises (ipods, iphones) and want to offer my service online. I have registered a domain name and im about to set up the website. I have no experience in online business and need some advice. Do i have to register as a business or can i do this without? Do i have to pay taxes for my service? How do i pay taxes? I have no experience in this area, so if you have any info on this please let me know.
Thanks
Jeppe

Itís great that you are getting started in business so young! The service that you offer is one that will be in demand for a long time; Iím always in need of an electronic repair. You can setup your business however youíd like. When I first started I did business in my own name, after I started to really turn a profit and become more popular I decided to incorporate. In the US you do not need to pay taxes on your services; however, you do have to pay taxes on any income (profit) that you receive from your business. Iím not sure how tax laws apply in the UK.

fredkawig
01-21-2014, 08:44 AM
Depending on your tax laws, fees and taxes should be paid only when you start earning income from your business. If your local laws require you to register a business permit for online services, you should definitely apply for one first. Paying taxes would soon come after when you are earning income already. If your city has a main office, or a city hall, you should be able to find a department for you to pay your taxes. The application of a business permit would most likely be located in your city hall or the main office of your city.

True Self Organics
01-21-2014, 11:07 AM
You should check your local laws regarding home based businesses. Some countries do not require you to set up as an "official" business and charge taxes until you make a specific dollar value, others require you to set up as a business immediately if you are intending to make an income. Your age may also be an issue, but this could be as simple as having a relative sign for you. Ask your relatives if they know any bookkeepers or accountants - perhaps you can score some free advise. Most are quite willing to offer advise to someone starting out in the hopes that they can get work from you after you start making money.

All income you make will have to be accounted for at tax time. If you do not have a registered corporation, then this will be entered on your personal income tax form.

Remember to keep track of every penny you spend on setting up your business, as these amounts will/may become deductions at tax time whether you register your company or not.

Also consult your local bylaws regarding home based businesses. The bookkeeper/accountant you speak with should be able to provide information on this.

Don't let all the legal/business stuff discourage you, and don't ignore it. It is easier to take care of things in the beginning, before you start, rather than paying penalties later.

It all depends on your local laws and how much you make. I think in the USA you have to make more than $600 a year to have to claim it. If you are making more than $600 I would definitely incorporate and set up your business correctly the first time. (that way if you do get big you already have all your ducks in a row) Also, if you are a legit business you can write off a tone of home expenses since you will be working out of your house.

jeppe
01-21-2014, 12:39 PM
Thanks everyone for the good advice. I have found this gov website (http://www.hmrc.gov.uk/incometax/personal-allow.htm) that states that Im allowed to earn £9,440 before i have to pay taxes. Would it be enough if i just log all the income i have or do i need to report it ? I think i will start with this before registering as a business.

AliceT
01-21-2014, 04:47 PM
Would it be enough if i just log all the income i have or do i need to report it ? I think i will start with this before registering as a business.
Just because you don't have to pay tax on it doesn't mean you don't have to report it. You should report ALL earnings on your income tax, even if you make only £100 your first year.

There are some online invoicing programs that will track everything for you. http://www.freshbooks.com/ is one example. I don't know if there are any free options. You could also use a simple spreadsheet program to record all your expenses and earnings.

pandandesign
01-23-2014, 12:21 PM
It depends on which state you reside, and each state has its own laws and regulations of business practices and tax. I would the state business department and the IRS to find out how you register the online business and pay for the tax amount that you've earned. There is a certain amount you have made in order to pay the tax, which it is normally above $600. However, I would check to see about it on the IRS website.