Alex Watts : Hello my name is ***** ***** I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply, but rest assured I will be giving your question my immediate attention upon return You do not need to wait here as you will get an email when I reply.
Alex Watts : Are you self employed please?
No, I am currently employed by the Civil Service. Tax is deducted from by gross pay by PAYE.
Alex Watts : How much will you earn per year?
I don't know, it's difficult to say. As guestimate - £2,400 excluding any royalties which are difficult to predict.
Alex Watts : Ok. You need to inform hmrc within 3 months .
Alex Watts : They will then send you a tax return every April for you to fill in.
Alex Watts : Tax will be payable on these earnings without any tax free as you are currently employed, assuming you use that allowance there.
Alex Watts : Therefore you need to put aside your additional tax and Ni before you spend it!
Alex Watts : You may also be able to offset direct expenses for doing the activity, but an accountant can do your return to maximise any allowances.
Alex Watts : So in short, inform hmrc, set aside the tax amount and seek the help of an accountant to help full out your return.
Alex Watts : Can I clarify anything for you about this today please?
You mentioned that I may be able to offset direct expenses for doing the activity, would this be things like travel expenses? e.g. train travel and petrol receipts? I will have to spend quite a bit on train travel and paying for necessary fees, food and refreshments, so I'm assuming I should keep all receipts for these to show as a business expense. Also, accountants can be expensive, how can I go about finding one that will help me maximise my take home pay without charging me a fortune?
I don't quite understand the 'allowance' is there a tax free allowance? What is that?