APPRENTICE star and West Ham United vice-chair Karren Brady answers your careers questions.
Here she gives advice to a reader who has been earning a few extra pounds by selling goods online while on maternity leave, but is now worried the tax man will be coming after her.
Q) While I’ve been on maternity leave, I’ve been selling lots of secondhand clothes on apps like Vinted, as well as personalised knitwear and crocheted toys via my Etsy shop.
I don’t make loads of money, but it’s great to be adding a little extra to the household pot while looking after my newborn.
I’ve never filled in a tax return – I wouldn’t know where to start – but after reports about HMRC checking up on Vinted sellers, I’m worried I’m going to get fined.
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How can I ensure I don’t get caught out?
Dorothy, via email
First, congratulations on your baby!
I completely agree that any little extra helps when looking after a newborn, and it is also wonderful to see you’re engaging your entrepreneurial spirit, especially in promoting sustainable fashion by selling secondhand clothes.
Navigating taxes as a small business owner can be daunting.
It is imperative to maintain records of your income and expenses related to your business, including receipts, invoices and any other relevant documentation.
HMRC makes its website as simple as possible for business owners to understand what tax they should be paying and when.
If you’re making more than £1,000 per year, you will need to tell HMRC about it by filling out a Self Assessment form – the deadline for filing this for the tax year that ends on April 5, 2024 is January 31, 2025.
HMRC will then consider what other income you earn to decide if there is any tax to pay.
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If you are still unsure about your tax obligations, consider getting advice from a professional.
This will obviously cost, but it’s better to address these matters early to avoid potential fines or penalties in the future.
- Got a careers question for Karren? Email bossingit@fabulousmag.co.uk.
