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I work full-time as a developer, and have recently had a couple of small side-projects - which I should really be paying tax on.

Does anyone have any advice as to how I do so?  It is only a 3-figure income so far, maybe it will grow - maybe I will prefer to have my weekend back...but either way I should pay tax on the extra income I have earned.

Should I register as a company (bearing in mind that perhaps my income may grow), or should I just register it as extra income?

Or if anyone has found a good website, that would be appreciated.

Kind regards


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all you need to do is fill in a tax return (online) and if there is tax to pay it will be deducted with your PAYE. You will have some expenses if you did the work at home, like your personal computing equipment and heating your house while you worked which will reduce the profit you declare.

For that kind of amount you will only be making a declaration of three figures:  turnover - expenses = profit and you won't need to show any detail. Even if the IR asked to see receipts which they won't the worst that would happen is that that you might have to pay a bit more tax.

Disclaimer: - IANAAccountant and if you get put in prison for taking my advice I don't want to know

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Yes filling in a tax return would be necessary, it's most likely that the extra income would be taxed at 20%, unless you earn more than £45k in your current job in which case it would be 40%. From memory when you start filling in the return it gives you some options so you can declare earnings over and above your full time job.

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