NFU Mutual Smallholding Insurance

Author Topic: Tax - register or not?  (Read 579 times)

Black Sheep

  • Joined Sep 2015
  • Briercliffe
    • Monk Hall Farm
Re: Tax - register or not?
« Reply #15 on: November 01, 2018, 06:12:36 pm »
I was under the impression from the GOV.UK website that NI contributions for the self employed did not need to be paid until profit was more that £6205 per year. 

£500 income would easily be written off against annual depreciation on farm assets and/or other costs so there is no profit to declare. 

Have I missed something else?

Actually I don't think you have and think I was wrong on the NI front - looks like things have changed since I was last self employed (versus limited company). Back then there was compulsory Class 2 NIC regardless of income/profit (used to be £2 a week or so) and Class 4 depending on level of profit. Looks like Class 2 has been cut back to the levels you mention above.

Like you say, small income easily covered by expenses incurred.

But most people making anything more than insignificant, occasional self employed income do need to register anyway.
Voss Electric Fence

bazzais

  • Joined Jan 2010
    • Allt Y Coed Farm and Campsite
Re: Tax - register or not?
« Reply #16 on: November 28, 2018, 02:28:57 am »
All businesses must be run in a view to make a profit - a business that is created to claim tax relief on losses will be followed up by HMRC as its fraud.

bazzais

  • Joined Jan 2010
    • Allt Y Coed Farm and Campsite
Re: Tax - register or not?
« Reply #17 on: November 28, 2018, 02:33:43 am »
Its not however fraud to take all the profits out of a business and make it run at no profit in terms of income - the best businesses run with no profit or loss. And a big fat paycheck in your pocket.

doganjo

  • Joined Aug 2012
  • Clackmannanshire
  • Qui? Moi?
    • ABERDON GUNDOGS for work and show
    • Facebook
Re: Tax - register or not?
« Reply #18 on: November 28, 2018, 11:36:42 am »
All businesses must be run in a view to make a profit - a business that is created to claim tax relief on losses will be followed up by HMRC as its fraud.

Not quite true.  Yes HMRC look for businesses to eventually make profits, but a period of 5 years of losses is usually allowed before they will engage, although the volume of the losses is also a factor
Always have been, always will be, a WYSIWYG - black is black, white is white - no grey in my life! But I'm mellowing in my old age

 

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