Do you have any other questions on this subject of tax for your Side Hustle? Drop it below 😀
@ashleydavies68622 жыл бұрын
Thankyou, very informative and have also watched your suggested video on paying from a LTD company.. I'd like to know what Kemi's example above would look like if she followed a LTD company approach for her Side Hustle. LTD seems very much more tax efficient but what does it look like when your main income is mostly taxed PAYE? Also, what type of fees would an accountant charge for LTD company accounts. Thanks again
@CouldBeElliot Жыл бұрын
Hello! Really good video thank you for the advice! Not sure you'll see this but if anyone else knows i'd be grateful. When you register your limited company and do your tax, will your company know who you're working for e.g. yourself or is it all kept private so they won't really know other than your tax code changing.
@lildoc2 жыл бұрын
On a different note, I was walking past a bus stop today and noticed Mary is now the face of PensionBee ads? I had to stop and stare at it for few seconds to make sure it was Mary. Well done!!!
@TheHumblePenny2 жыл бұрын
Yay! Yes, it's me 😊. Where did you see the ad?
@zainabmt41102 жыл бұрын
@@TheHumblePenny yes I saw this ad on TV too and was cheering you on😀👏🏾👏🏾
@ellea25412 жыл бұрын
My phone is full of THP screenshots. You're such a good teacher and this channel is gold! ✨
@TheHumblePenny2 жыл бұрын
Thanks so much 😊. We'd appreciate you leaving us a testimonial for our new website. Please see the Community tab where we posted some guidance. Your feedback matters a lot to us.
@CW-Design Жыл бұрын
Thank you. I recently became a freelance designer after working for various agencies for 15 years. Considering the best route to go down - very informative
@madamecrazy2712 Жыл бұрын
Fantastic video, finally gives some clarity on how it works with 2 incomes and the untaxed allowance. Thank you!
@TheHumblePenny Жыл бұрын
Great! Do share with others
@MrRoyck102 жыл бұрын
The humble penny channel is extremely informative and resourceful, I wonder why someone will be hesitant to subscribe, I have learnt a lot from your platform even though I have been investing since 2004. Your back catalogue of videos on ETFs and REITs have helped me balance out my portfolio as the dividends trickles in passively. Thanks for financially educating us in all realms of archiving FIRE 🔥 you are such an inspiring couples, double thumbs up 👍🏾👍🏾
@TheHumblePenny2 жыл бұрын
😊🙏🏾🙏🏾💛. Tell them 👊🏾
@Dannniiiiiiiii2 жыл бұрын
This is 💯 needed. Thanks so much!!
@TheHumblePenny2 жыл бұрын
You're welcome. Please share with others 😊
@omoribakeikumoluyi9111Ай бұрын
I thoroughly enjoyed this video. Thank you so much, especially for finally helping me to understand the concept of retained earnings. I wondered if, for completeness, you could do corresponding examples for Scottish based tax payers. The tax bands and rates in Scotland are different to the rest of the UK, so it's really hard to apply these examples to Scotland based tax payers for which there are millions. Thank you.
@zainabmt41102 жыл бұрын
I needed this video 2 weeks ago😃 but definitely still helpful. Thank you
@TheHumblePenny2 жыл бұрын
Thanks for watching 😊
@pauledokpolo451216 күн бұрын
@The Humble Penny. Thanks for the video, just wanted to ask a question if you offer your services to forex traders in the UK for tax purposes? Thanks
@storageNow2 жыл бұрын
video on buy to let taxes pleaseeeee 😊
@TheHumblePenny2 жыл бұрын
Noted.
@thesillypundittsp5855 Жыл бұрын
Great video you guys explained it so easy thank you , subscribed 😊
@TheHumblePenny Жыл бұрын
Awesome! Thank you! 😊
@abucketofelves2 жыл бұрын
Good stuff, just wanted to point out the Class 4 threshold has also gone up this year to 9881 from 9568
@TheHumblePenny2 жыл бұрын
Thank you, Ian 🙏🏾
@OwlofHorus2 жыл бұрын
Wow this is incredibly helpful information. Thank so much its clear this took a lot of effort to make!
@TheHumblePenny2 жыл бұрын
Glad you appreciate the effort here. It was a tough one 😅
@betteryouin24182 жыл бұрын
Notes taken. Such a great video. Thanks for this
@TheHumblePenny2 жыл бұрын
👊🏾. Please share with others
@angielitchi53912 жыл бұрын
Pure gold Ken. Thank you for this much needed information.
@TheHumblePenny2 жыл бұрын
You're welcome, Angie 😊
@Tomexplores_10 ай бұрын
great video. Thanks for making!
@TheHumblePenny10 ай бұрын
Cheers, Tom.
@emmirmoran5582 Жыл бұрын
Súper helpful guys
@Chief_Spook Жыл бұрын
Hey guys, great video. Question on Ltd company salary. You mention that if Chidi took a salary he would have to register for self assessment but if he used someone to do payroll for him and provide payslips etc…would that not just be another PAYE situation?
@BlessedPetrel2 жыл бұрын
Too good Ken & Mary. Ken, you're a natural teacher. Brilliant content 👌 👏. Keep on keeping on the great work Team Humble Penny. God bless.
@TheHumblePenny2 жыл бұрын
Thanks a lot! 😊. Please share with others. God bless.
@jacobzatorsky Жыл бұрын
I really loved the video, you really did explain it in such a detail! It seems for me like such a big ocean, I have started earning some money from a side hustle, but for now I think being a sole trader would be a simpler option :)
@TheHumblePenny Жыл бұрын
Thank you :). Starting as a sole trader is a good move for sure.
@nhaezer51212 жыл бұрын
Thanks for the video - very enlightening. Question please - For Chidi, will he still not have to pay tax on the £8,840 salary, considering that his personal allowance would have been used up by his PAYE (ie from his job as a doctor)? Would that not then lead to a situation where any company profit is better withdrawn entirely via dividend?
@oluwatosinoluyemi881611 ай бұрын
Thank you. The video is very helpful
@TheHumblePenny9 ай бұрын
👍🏾
@memounatakone20362 жыл бұрын
Thanks the Humble penny. It was so informative. This is currently my dilemma.
@TheHumblePenny2 жыл бұрын
Glad to hear that you found this useful 👍🏽
@RarelyMainstream9 ай бұрын
Thank you so much for a clear and concise presentation. Can a sole trader upgrade (for want of a better word) to a limited company once the side hustle starts doing well?
@TheHumblePenny9 ай бұрын
You're most welcome 🙏🏾. Yes 😊
@rnises Жыл бұрын
Currently, I am an employee and rent out a property. Rental income takes me to a higher rate tax bracket. I also own a limited company company. To reduce the tax, can I take the rent into my limited company account and then take that money out as a dividend?
@markryb6668 ай бұрын
Simply put Kemi has no money left 😂. Thank you so much for this video been looking for this for ages. Great information. Also putting me off hahaha.
@TheHumblePenny8 ай бұрын
Amazing!! I loved making this video. Do share with others.
@chumamakasi6682 Жыл бұрын
Hi Ken, thanks for all your insights, I have a quick question. If one starts as a one person Ltd. company and wants to bring in his/her spouse, is it better bringing the spouse in as an employee or a director, which is more tax effective especially if the person wants to maximize dividend taking.
@TheHumblePenny Жыл бұрын
You're welcome :). It's better to bring a spouse in as a director and shareholder. This offer best tax efficiency.
@futurista19749 ай бұрын
Hi mate your video is top I have a question please I have already registered a company and the propose of company is to rent out houses However I have not physically operated my business yet due to lack of understanding. so my question is how can I list the house to business so i can start operate it legally and paying taxes. And how can I pay taxes. Please mate and sorry for my broken English. Many thanks
@LoveQualified2 жыл бұрын
Thank you so much for this very helpful video. Please I have a question. My side hustle has made over £1000 income so far this year which means I’ll have to register for self-assessment, right? Will I have to pay tax now or wait until I have up to £12500 of income? Do I only pay tax if I make at £12,500 income every year?
@Shaun-v2y9 ай бұрын
I've entered my UTR and it asked if i'm best described as a Trust or a Partnership. I'm not sure i'm either but i have to chose one.....and then register that option. Any suggestions please?
@catrionaduncan90342 жыл бұрын
Ken/Mary, thanks for sharing your wisdom as always. I'm a bit torn. I'm keen to start my copywriting business and have a company name in mind. However I also have a full time job earning around 30k. As I don’t have any clients yet should I start as a Ltd, a Sole Trader or not register on Companies House? I'm not sure how hard it is to incorporate a ST into a Ltd at a later date... wondering if you had any suggestions please? Thank you in advance and keep up the great content!🙌
@TheHumblePenny2 жыл бұрын
At that income level, if we were in your shoes, we'd start as a Sole Trader. It's not difficult to transfer from Sole Trader to Limited company. But there is admin to do...
@catrionaduncan90342 жыл бұрын
@@TheHumblePenny thanks both! I'll look into it. Thank you for everything. Your wisdom is priceless.
@GavstarLeo9 ай бұрын
I am looking at starting up an Etsy shop but am stuck with what path to follow, whether I should do a sole trader as starting out first or a Limited company, would love a little more information on what would be suited best. thank you so much, quick edit... so starting out I don't really have to register if my profits are below £1000, could I still get a business bank account or use a spare personal bank account first then if my business takes off I can then go as a sole trader self employed etc?
@ineedahero1234562 жыл бұрын
it would be great if you could make a video about traditional employment and tax... it's looking like there is nothing to be done
@TheHumblePenny2 жыл бұрын
What exactly do you want an answer to?
@gwyneveresunlightblade59622 жыл бұрын
Amazing video, thank you! It was very informative. Would you be able to cover Crypto trading as a side hustle and UK tax please?
@TheHumblePenny2 жыл бұрын
We've done a detailed Crypto tax video already :). Please search our channel
@k.imelle2 жыл бұрын
Can you set up a limited company and be employed by an employer and have a side hustle and both “payments” go within that LTD?
@TheHumblePenny2 жыл бұрын
You can if your employer is happy to pay you into that limited company.
@MisterEfficiency2 жыл бұрын
Hi Guys, similar to Veronica's situation (in the comments), I earn within the 40% tax bracket and have a side hustle earning between 500-700pm. I initially set up as a sole trader due to the fact it's lower revenue and that I could manage my accounts myself (and not pay accountancy fees). I had a ltd company a few years back and was paying around £120pm and simply thought that this option would be a waste if I was only earning £500 per month (the lower end). I wasn't aware of NI so I'll have to look into that but it does seem sole trader option isn't the best option for me. Considering the tax year is up soon, I'll look to set up a ltd company for 22/23 tax year. Do you recommend any accountancy firms to manage these smaller revenue accounts? Thanks
@TheHumblePenny2 жыл бұрын
Thanks for sharing. I hear you. About accountancy firms, you can search for an Accountant on the ICAEW website.
@Piperbabe222 жыл бұрын
This is what i will have to look for as well. I´m not confidant enough to manage the accounting myself. But i fear i woudl spent too much on an accountant for it to be worth it.
@samanthacoutts8602 Жыл бұрын
Does that £1000 before becoming a sole trader still count if it is a second job? I think i understood it as yes but i just want to confirm before i start a side hussle. (Im paranoid about getting this wrong)
@c47los.212 жыл бұрын
Can you just pay dividends from a limited company instead of both salary & dividends, if you a currently in full time PAYE role outside the company?
@TheHumblePenny2 жыл бұрын
Yes. As you're a shareholder of your business.
@darrelwilsxn Жыл бұрын
Hi! I earn £33.5k per year salary on my main employment, I also earn £3.5k from a part time employment. Both are PAYE and tax and NI is sorted by the employers. However, my friend and I also have a little side hustle, buying and selling things. It turns over approx £100k per year, but only £36k of this is profit. We don't have a joint bank account, we just use the one account and give ourselves a wage monthly. Therefore, I personally make around £18k per year with my side hustle for my equal 50% cut. What would be the best route for myself / us as my friend wants to continue being self employed each, but does that not make the books difficult that way? Thanks in advance!
@purehimalayanshilajit50532 жыл бұрын
Hello guys, hope all is well. In order to set up a business bank account do I already need to be registered on companies house as a limited company?
@TheHumblePenny2 жыл бұрын
Yes. You need a business entity to open a business account
@Shaun-v2y9 ай бұрын
Are there any tax deductible expenses for side hustles, such as broadband and energy costs?
@TheHumblePenny9 ай бұрын
We gave different examples in the video. Please watch the relevant time stamped sections that answer this question if your side hustle operates as a sole trader or limited company.
@Shaun-v2y9 ай бұрын
@@TheHumblePenny thank you
@mayhellenedem82082 жыл бұрын
Hi, Thanks for the video, so I recently started a side hustle and opened a limited company, but I have been spending my income on normal grocery n household stuff, I don't know if that will affect me when it's time to pay my tax
@TheHumblePenny2 жыл бұрын
You shouldn't combine personal and business expenses. Those expenditures will be treated as income to you and taxed as such if they're of a personal nature.
@VickiMM Жыл бұрын
💎💎💎💎💎💎
@TheHumblePenny Жыл бұрын
❤️🙏🏽
@ng6121 Жыл бұрын
can i have a job and a LTD company????
@TheHumblePenny Жыл бұрын
Absolutely. A lot of people do. I did.
@ng6121 Жыл бұрын
@@TheHumblePenny is it better to start as sole trader or ltd company