UK - Tax and VAT question

hi everyone,

Last week I got invited to my wife's work party as a photographer. This was my very first unpaid gig. I got a chance to speak to some higher heads and once I briefly showed them my portfolio and than later the pictures from the party they said they might have some more work for me.
I am in the UK and only just started thinking about shooting more paid sessions. Mainly I would like to go into newborn/family photography. I got my website, business cards, bla bla bla, but frankly the business side of it really puts me off as far as marketing, taxes, etc is concerned.
I have a full time job (PAYE) and I was thinking If I could make a little bit extra doing photography on the side that would be nice.
My question really is if they want a receipt for the work I will carry out for them, how do I tax it. Obviously I am not a VAT registered so is putting tax on it enough? I assume I would need to register as a self employed person?

Any advice much appreciated.

Thanks

tommmy.star wrote in post #13800983
hi everyone,

Last week I got invited to my wife's work party as a photographer. This was my very first unpaid gig. I got a chance to speak to some higher heads and once I briefly showed them my portfolio and than later the pictures from the party they said they might have some more work for me.
I am in the UK and only just started thinking about shooting more paid sessions. Mainly I would like to go into newborn/family photography. I got my website, business cards, bla bla bla, but frankly the business side of it really puts me off as far as marketing, taxes, etc is concerned.
I have a full time job (PAYE) and I was thinking If I could make a little bit extra doing photography on the side that would be nice.
My question really is if they want a receipt for the work I will carry out for them, how do I tax it. Obviously I am not a VAT registered so is putting tax on it enough? I assume I would need to register as a self employed person?

Any advice much appreciated.

Thanks

What tax were you planning to put on the invoice?

You can't charge VAT as you aren't registered and have no need to register. The only tax you need to concern yourself with is your income tax, and that doesn't go on the invoice, you just calculate it when you do your self assessment at year end. As you are already paying tax through your normal work, any income from photography is taxable as your personal allowance is already taken care of. However, if you are earning from photography, you can also claim back some of your expenses. If you are doing regular photography jobs, then depreciation on equipment is claimable and you could actually end the tax year with a tax rebate, rather than a bill.

HMRC understand that it can take up to five years for a photography business to show a profit, so any losses in the meantime can be set against your PAYE.

Best advice, talk to an accountant - many will give you an hour free and they will be able to tell you what you can claim as a start-up business.

As an example you should be able to put any equipment you have purchased in the last X years (can't remember what X is) into the business and offset this against your profits. If you make a loss you will be able to offset this against your tax return.

You should resister as self employed as you will be required to fill in a Self Assessment declaration each year and will also be liable for additional Class 2 and Class 4 NI contributions.

With regards to your invoice just invoice them your fee - as sandpiper says tax does not come into it at this stage.

Depending on your current income however you will be liable to 20% / 40% income tax so make sure that you consider this when you set your fee.

Remember that your self employed taxable income is your profit not your sales.

Example :

Sales - £ 40,000
Allowable Expenses - £ 15,000
Capital Allowances - £ 5,000
Investment Allowance - £ 4,000

Profit - £ 16,000
Income Tax Payable @ 20% - £ 3,200

Find a business suport group or enterprise suport group.

The one near me called E-Factor give free book keeping classes and give you a free business adviser they will know everything you need to know and help you do it all.

Best phone call i ever made i go down every few weeks for a class on one thing or another and will see my adviser once a month.

Alex