When does business income usually taxed?

wilfrid · Apprentice Joined: 03 Jun 2005 Posts: 6

I am thinking about setting up a new business but since I would be starting off on a very small scale at first, I am worried about taxes and being taxed too much to be able to survive financially. Can you tell me more? When does business income usually become taxed? Thank you for any help.

kellen · Apprentice Joined: 28 Apr 2007 Posts: 10

If it is going to be a one man band, self employed type of business than I would not worry too much. Paying your taxes IS going to be more complicated than they would be if you were an employee, which is obvious to anyone, but you would still "pay as you earn", so the same principle still applies.

trenton · Apprentice Joined: 29 Jan 2008 Posts: 2

Your profits are going to be taxed as a business, rather than just your wages, of course. If you want to find out more details, contacting the HMRC would be the cleverest thing to do in my view, so that you are sure that you have got the right information. After all, it is better to find out before, than after!

cosimo · Apprentice Joined: 22 Dec 2004 Posts: 11

Isn't there such a thing as a basic tax rate that you have to pay if you have got a business registered, regardless of whether you are earning or not? A rate that you have to pay from zero, so to speak? This is what I had always understood and I would like to hear more about what the rules are on this issue.