How to set up a fb business????

[ljo1984]

Hiya I've been making hair bows for my girls and am interested in starting to sell on fb as I really enjoy making them but a girl can surly have so many hair accessories lol. So how do I go about it?? Tax wise etc mainly. I'm a nurse full time so already have a tax code, pay tax and NI. How do I go about a second income? Bearing in mind I won't be making a massive amount just a hobby as such especially as I'll be on mat leave in a few month so will occupy some time as a bit of extra pocket money. Thanks in advance for any advice. X

 

[supertabby]

I don't know a lot about setting up tax stuff etc however I do know you aren't supposed to receive maternity pay as well as other income. So you could lose your maternity pay so consider this.

 

[ljo1984]

Ah right, I was wondering that too, mmmmmm I'll get slot more mat pay that I would selling lol.

 

[AP]

I'll be honest Hun, Facebook is swamped with hair bow sellers, it may not even be worth it these days.

 

[R_x]

There's also twitter you can use. I follow a lot of small company's on there. X

 

[Kay_Baby]

You would have to register as self employed and complete a tax return every year. It is a lot easier than most people think to do a tax return if you are only declaring some extra income and expenses.

I think you can set up a self employed business while on maternity and it not effect your smp as you are still employed. Where you might fall down is if your work contract doesn't allow self- employment.

 

[sue_88]

A second job, regardless of how much you earn is taxed at basic rate (20%.)

 

[Kay_Baby]

A second job, regardless of how much you earn is taxed at basic rate (20%.)

That's incorrect. A second job will normally be taxed on a BR tax code (basic rate no personal allowance) automatically but any adjustment if you fall into higher rate tax jointly between your two sources of income needs to be paid.

 

[Rachel_C]

The HMRC website is pretty good at explaining how to register as self-employed. I think it took about 10 minutes for me to register and then it only takes another 10 minutes once a year to fill in a tax return - you do need to keep accurate 'accounts' - in my case that's a spreadsheet with a list of money in and money out, nothing fancy!

 

[My_First]

A second job, regardless of how much you earn is taxed at basic rate (20%.)

That's incorrect. A second job will normally be taxed on a BR tax code (basic rate no personal allowance) automatically but any adjustment if you fall into higher rate tax jointly between your two sources of income needs to be paid.

Exactly this.

If someone is working PAYE at 100k say, and then get an extra 10k self employment, it will be taxed at the higher rate of 40%.

Where some people fall down is when HMRC dont tally up the two jobs and the lower one is not being taxed (or at 20%). Then what happens is later down the line you get a hefty tax bill.

This actually happened to my step father when he was still working and received his Police pension too (legitimately). He got a bill for 5k as both incomes were being taxed at 20%, when jointly they were taking him over the 40% bracket.

 

[My_First]

Becoming self employed is dead easy, but there are things you need to sort out, like paying NI, saving to pay your tax bill etc. Also, if you are selling bows to the general public have you tested them for Health and Safety, fire ******ants etc. You will also need to get insurance as a self employed person too, as, if someone came back and sued you for their child choking or something, you are covered.

Whilst it is easy, there are important things to consider, especially when you are selling a product and not just providing a service.

 

[jd83]

I'll be honest Hun, Facebook is swamped with hair bow sellers, it may not even be worth it these days.

This is what I was thinking. I know like 10 people within a 3 block radius of me that sell them on FB. Those are just people I personally know. There's a ridiculous amount of people selling them on FB.

As far as the tax end of it, previous advice is good if you do decide to go forward with it. Make sure you look into insurance, etc for small parts.

 

[sue_88]

A second job, regardless of how much you earn is taxed at basic rate (20%.)

That's incorrect. A second job will normally be taxed on a BR tax code (basic rate no personal allowance) automatically but any adjustment if you fall into higher rate tax jointly between your two sources of income needs to be paid.

Yeah sorry I see I wrote that that way but I did essentially mean you'll be taxed no matter what you earn (no personal allowance like on your main job)