Welcome to Our Community

Wanting to join the rest of our members? Feel free to sign up today.

Sign Up

Yikes, I've made £200!

Discussion in 'General Forum' started by FLann1gan, Sep 5, 2009.

  1. FLann1gan

    FLann1gan New Member

    Right, I did some work that I wasn't expecting payment for. My client (an old employer) agreed to pay me £200, but I need to know how to get it through the books.

    I am employed full time but may try to get a few more wee projects over the coming months.

    So my questions:

    1). Do I need send an invoice?
    2). If so, does it need to come from a registered company and do I need to register as self-employed/sole trader
    3). Do I need to register a company?
    4). Do I need a company bank account?

    Thanks in advance!
  2. Hartley

    Hartley New Member

    Hi Flann1gan

    Well done on the first gig! A similar question has popped up on another thread..but basically:

    1) Yes issue an invoice as you'll need to show what you've invoiced and what you've banked as a business. You don't need to register anywhere if you're a sole trader, and you won't hit the threshold for registering for VAT for a while yet either so don't include VAT on your invoice (you can register voluntarily below the threshold if you purchase in a lot of supplies in which case it would be beneficial to claim the VAT back on these).

    2) Open a separate bank account for your business for the same reason as above

  3. pdmac8

    pdmac8 New Member

    Congrats on the payment, its nice to get paid for something you love and that will be the key to your tax.

    What you can do is register yourself as getting paid for a hobby, this will limit the amount of incorporation you have to do in terms of business bank accounts etc.

    The best thing to do is ring your local tax office and ask their advice.

Share This Page