Paying tax (UK)

Hi, apologies if this has been covered elsewhere.

I’ve recently received my first payment from Admob via paypal. Its not that much, a bit over £100 from November, but the payment in the next couple of weeks from Decembers revenue will be much more significant.

So, whats the easiest way to register with HMRC to pay tax, to register as a sole trader? Are people paying tax?

Also, any idea if it’s allowable to register in my wife’s name?

Thanks.

I registered with HMRC as a Sole Trader. I’m not sure how/if HMRC would be able to track this type of business per say, but I’m playing it safe anyway.
No idea about whether you can register under your wife’s name, but I’d imagine you would be better off under your name?
Why would you do it under her name?

Thanks for your reply. Yeah, I had similar feelings about the ability of HMRC to track the income, but I thought better safe than sorry. And it let’s us moan about Starbucks.

My wife is currently on maternity leave, and so isn’t earning much - so might pay no or less tax, which is why I was wondering if I could register in her name. For self assessment, do you just need to keep a not of monthly payments? Did you do anything like claim the cost of a computer as tax free?

Hi MikeMck,

I have the same problem. Is a sole trader the same as self-employed?

If I register as self-employed, do you know the tax rate?

Thanks

I’m not sure if sole trader is the same as self employed or not.

As far as I understand registering as a sole trader will mean you’re required to fill out a self assessment tax form. So, if you have another day job, you would take the income from your day job and also let them know of any income earned from your android apps. So, to answer your question about the tax rate, normal tax rules would apply so it depends how much you earn as a total, whether you pay 0%, 20%, 40% or 45% rate.

Yeah Mike’s got it right pretty much. Although being “self-employed” only means you employ yourself either while being employed elsewhere by someone else or not.
A Sole Trader is just the sub-category, like being in a Partnership or even a Limited Company, so long as you’re effectively your own boss.
This year the personal allowance is going up to something like 10k before you have to pay taxes, which is higher than it’s been in ages as far as I know. Figures are all available with HMRC. Don’t forget you have to pay NIC yourself too. I do mine on a Six monthly basis. You can also do it monthly I think.