I'm PAYE lower rate tax bracket, and completely seperate to my job, have a website that generates a little income via donations. I've got an advertiser that has agreed £30 a month for a banner ad...all good so far.
However, they want a quarterly invoice to pay. Now I've not got the first clue about invoicing, and I've got this niggling doubt that I should probably do a tax return! Got no quibbles about paying any tax, after all I can probably offset against a new Chromebook as to replace my ageing machine that I use to maintain the site, which is once or twice per day, probably 45 minutes work.
However, a little Googling suggest I might not even need a tax return, I read a news article that suggested with simple tax affairs where you owe less than £3k in tax, you can just ring up and they'll adjust my tax coding for the following year? However, the article was basing this around examples of income from savings etc.
I intend to give them a call but it would be nice to understand the basics if anyone already does this?
If it were me i d do self assessment its really easy, diy. Just record income and costs as you go along then add them up at year end. Keep records.
Pretty sure too you can carry forward losses to next year which helps alot. A few accountants on here so if i m wrong, apologies, you can carry forward losses on property so thats all i know.
Thanks...good to hear its easy to do. There are very little incomings and outgoings, so it won't be difficult to keep track
Now I've not got the first clue about invoicing
Just send them a piece of paper saying "Invoice" with a table showing, quantity, item and price.
1, Monthly Banner Ad Fee, £50.00
Then stick T&Cs on the bottom e.g. Payment terms: 14 days from due date.
Rather than self assessment you can just send IR a letter each year listing your extra earnings and they'll just adjust your tax code to account for it (much simpler, I do this each year).
Thats a lot easier, i d do that not sa then.