Probably too far to pop up to Brum every month.KIALea wrote: ↑Wed Feb 21, 2018 10:50 amThanks David, im in Essex, I work full time 40 hours per week so im not really a full time writer, Ill declair all book incomes, i need to have a proper research if there is a threashold for 2nd incomes etc.
In terms of all those receipts it seems a bit of a faff, but for where you say the cost of books to sell myself? I assume you dont mean i can claim the cost of those back at 4.50 a book for example? im selling for 8.99.
If you buy 20 books at 4.50 and sell 10 at 8.99, then your expenses are 90.00 and your income is 89.90. There are places in your tax form to fill those in. And then you declare a loss of 10p. (You have stock left, which you may sell next year, but that's income in the next tax year.) This freelance work is off-set against earnings from your 40 hours a week job. So, 40 hours a week at minimum wage is an annual income of... er... (40*7.50*52) comes to £15,600. That's minus single person's allowance of £11,500 means you are taxed on £4,100 and at 20% that's £820 to pay. However, your writing made a 10p loss, so you only made £4,099.90, which is £819.98. This means that the thieving taxman owes you 2p.
Hmmm, this is a bad example as the numbers are so low, but it's how it works. Clearly you've travel to the event you sell you books at and so on to claim as well. The game is to make a galloping loss and get tax back.
The only threshold I can think of is the £85,000 for compulsory VAT. I'll have no advice on that until my jet packs for pigs project takes off.