How would starting an online business affect my tax and national insurance?
All UK citizens get a tax-free personal allowance of £6475, and the UK tax year goes from 6th April to 5th April. Your personal allowance will now be at your job, and it is likely that this will continue, although you can have it against self-employed earnings if you wish. That would mean you would get a straight 20% deduction from salary, and most people prefer to leave tax allowance at job. Yes, if your earnings were over £6475, you will still get PAYE tax deductions from work. You would also have to fill in an annual Tax Return with employed and self-employed pages. Self-employed people pay tax by 31st January and 31st July each year, although that is over-simplifying the system, which can be complicated. You can check it out on http://www.hmrc.gov.uk , then into self-employed if you want to look further. You will pay a straight 20% tax on your self-employed earnings, could even go up to 40% if earnings large enough. Yes, tax is pa
