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mia-clubfido-co-
Level 1

I'm just starting out as a small business, I'm currently earning £600 a month before expenses. When and how much tax do I need to pay?

 
2 REPLIES 2
Rose-A
Moderator

I'm just starting out as a small business, I'm currently earning £600 a month before expenses. When and how much tax do I need to pay?

Hey there. mia-clubfido.

 

While the Community can provide answers and troubleshooting solutions to certain questions, there are things that only HMRC can answer about tax-related concerns.

 

I'd suggest getting in touch with HMRC or working with your accountant. They'd be able to guide you about when and how much tax you need to pay. 

 

I'll be sharing with you the following resources below. These will provide us with a step-by-step process for setting up and recording VAT payments in QuickBooks Online. On the same links, we can find more details about submitting VAT returns:

 

Making Tax Digital for VAT submission checklist for small businesses.

Turn on MTD for VAT and connect QuickBooks to HMRC.

 

Should you need anything else aside from paying taxes in QuickBooks Online, please let me know, mia-clubfido. I'm always ready to lend a hand. 

paul72
Level 8

I'm just starting out as a small business, I'm currently earning £600 a month before expenses. When and how much tax do I need to pay?

Hi @mia-clubfido-co- 

 

Similar question from about six months ago - link

 

I still hate giving 'it depends' as an answer but... it depends!

In this case, it depends how your new business is set up (are you working as a Sole Trader - i.e. self-employed - or as a limited company?).

 

In practice, £600/month is below the current income tax & NI thresholds - so there is no tax/NI to be paid.  However, the reporting (to HMRC) of the payment may be important because when you say 'earning', what matters is how the money is being paid/taken.

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