TAX NEWS - 2010

Tax Q&A: Do you pay tax if you are 16 and have your own small business UK?

Hi, I'm planning on starting my own little business with my friend dog walking in my village. I'm 16. I'm also creating a website on one of those free website (freewebs) things. What sort of tax things to I need to look out for and/or pay for? In ENGLAND by the way. Thank you x


Answer: Depends on your income. Currently the tax threshold is set at £6475 so you can earn this much without having to pay tax on it.

With National Insurance, you can earn £105 in any one week then you should pay tax on the balance.

If you're not going to earn this much then you should still declare your income to Revenue and Customs but you won't have to pay tax on it.