How much can you earn before having to pay tax on it?

Bitsie

Hi, not sure if im in right forum so apologies in advance!
Basically, I had the idea of giving private drum lessons but only have one student so far so needless to say not making money yet....but i just wondered how much would i have to be making before I need to consider it a business and register for tax etc..?

EI-EAY

Your supposed to register for tax straight away, Your tax liability will most likely be nil, Bearing in mind you can get capital allowances for your drum kit, and either travel expenses to your student or a proportion of the light/heat in your house.

Here's a quick example:

Drum Kit costs €1000
Captial allowance per year €125

Feel free to Pm me if you want more advise.

betonit

EI_-EAY.. if youa apportion light & heat form your house as a business expense would you be subject to rates?

AARRRGH

Are you a sole trader? If so you can just declare your extra earnings when you do your tax return at the end of the year.

You don't have to declare for VAT until you hit (can't remember exact figure) 36k per year or something like that.

Bitsie

Well im not anything yet. I had been made redundant last year and thought i would see if i could teach any drum lessons part time but like i said up until now I only have one person wanting lessons

murphaph

Don't forget your Jobseeker's Benefit/Allowance is taxable income if you are in receipt of it!