- September 14, 2023
- Posted by: legaleseblogger
- Category: Related News
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AI Legalese Decoder: Simplifying Legal Compliance for Young Entrepreneurs
Introduction
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Introduction
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****** just grabbed a
Is your business [buying two sets of golf clubs for 87p from Amazon](https://www.reddit.com/r/golf/comments/169tesi/how_much_are_these_worth_did_i_get_very_lucky/?utm_source=share&utm_medium=android_app&utm_name=androidcss&utm_term=1&utm_content=share_button) and selling them on for what they should have been priced at?
[Screenshot of OP’s original post.](https://imgur.com/a/7DqUFg5)
First of all, congratulations!. As you’ve made more than ┬ú1000 you’ll need to register for self assessment by 5th October 2024, there is a lot of information at the link below:
[https://www.gov.uk/self-assessment-tax-returns](https://www.gov.uk/self-assessment-tax-returns)
You won’t need to pay any tax until you’ve earnt more than ┬ú12,570 in this ‘tax year’ (from April 6th 2023 to April 5th 2024), but the [gov.uk](https://gov.uk) website is fantastic at explaining what you need to do.
TLDR: Keep track of how much money you make until April 5th 2024, then you’ll need to do the legal stuff
1. You’ll have to complete a self assessment. I recommend getting an app to record all your in and outs to make this easier when it comes. Theres guides on how to fill it out online.
2. Absolutely not, you can run a business at any age and congrats on doing so. Not sure about registering it but maybe someone’s else here with better knowledge can assist.
3. Some won’t allow you to but you can always open a separate current account and use that exclusively for your business dealings. Best to keep it separate for when your raking in the cash.
Anyway congratulations on a 4 digit win, very impressive especially at 14!
Is it a real business or are you just selling digital stuff etc.
When I was 14 I sold around £8k worth of RuneScape, never even thought about paying tax on any of it. Nothing ever came of it either.
Well done on making that money, firstly you need to register as a sole trader – this is easy to do on the HMRC website and you need to fill in self assessments each year. But I would now consult your parent or guardian about this matter. As this is not something I would advise you do yourself unless you feel capable.
So the reason youÔÇÖll need to do this is if you end up earning I believe above ┬ú9000 youÔÇÖll start paying national insurance on it but the personal tax allowance is ┬ú12,500. The other truth to sort of bring out unless you make lots and lots of money I wouldnÔÇÖt worry about doing all this because youÔÇÖre 14 – no one is going to check or investigate this.
But If you want to be on the safe side do the above and fill out the self assessment at the end of each tax year. So the tax years run from pretty much April to April in the UK – so any income from this April to next year is how much you would need to declare.
One thing you should start doing is create or utilise software or in simple forms a spreadsheet to track income and expenses, you only pay tax on your profit. One sound advice I can teach early to you is you donÔÇÖt really ever want to pay lots in tax so make good purchases with your money to lower your profits to pay less tax. You will need to consider the tax after ┬ú12,500 at 20% so you only pay tax on the profits above this value. You also pay I believe 9+ % on national insurance after a certain income threshold has been met. But I believe you do not have to pay National Insurance until you are 16 from a quick google search!
If you want to get a new laptop or computing equipment buy it and that will come out your expenses, keep good track of all this and keep receipts of any expenses if you ever had to prove why you did xyz. If you have any more questions please fire away!
Lastly this may be hard to get your head around but in the UK we pay payment on account as a sole trader, so if your tax bill is letÔÇÖs say ┬ú2000 at the end of the year you will actually have to pay ┬ú4000 as ┬ú2000 is called payment on account, you would pay in the January of 2025 ┬ú3000 and ┬ú1000 in the July, the reason for this is on your next tax bill letÔÇÖs say your tax bill was now ┬ú3000 the ┬ú2000 you paid last year comes off that tax bill and you would now pay ┬ú1000 tax bill but you must remember payment on account now – so your bill is ┬ú2500 and in July ┬ú1500 – the point this was introduced is so sole traders after getting things going always have a bit of a pot in place already to lower tax bills with expected growth each year though you can opt out of paying this if you donÔÇÖt think you will continue this business in the following tax year. I hope this makes sense, utilise HMRC and gov website to read on these topics and also utilising something like Chat GPT to ask questions about this can provide you a more conversational point on different aspects if you do not understand them. If your parents have any friends in this field of ÔÇ£financeÔÇØ they can probably give you a helping hand!
By the way i have no business expenses as of now its all done for free
Edit: No its not the [Cancelled](https://imgur.com/a/bxyFBuA) golf clubs!
Well done mate at your age that’s fantastic, I know many here won’t agree with what I say but if you are being paid cash I’d personally say nothing at your age and enjoy it. Your young so you shouldn’t be having that pressure on you yet
– As others have said youÔÇÖre technically liable to register for and make a tax return. *However*, unless this is likely to become a regular thing, I honestly wouldnÔÇÖt bother. YouÔÇÖre way below the threshold at which tax is actually due and frankly itÔÇÖs more hassle than itÔÇÖs worth for a single profitable transaction. Plus, HMRCÔÇÖs heads will explode.
– YouÔÇÖre completely entitled to do business at your age. Tax is payable by everyone regardless of age.
– I donÔÇÖt know if you can open a business account, but IÔÇÖd doubt it. What I would recommend is that you open a separate personal account and route all your business transactions through there if this continues.
I ainÔÇÖt gonna lie this made my day
OP here, to clear a few things up
1. The golf clubs have nothing to do with this.
2. Its not ÔÇ£one offÔÇØ and its scaleable.
3. I have no idea why people are messaging me to troll all i did was ask for some help
So if I’m putting all this together (assuming it’s true), you got a golf set for 87p, waited a few days for it to arrive, and then sold it at retail value. Correct?
Make sure to check whatever your business is doesnÔÇÖt require a license kid. Good job making the money.
Your post history gives different figures every time in terms of what you have made in the last 2 days…
Assume drop shipping? Gl dude
My first questions would be:
1. Doing what?
2. Is it legal?
3. All in cash?
While I fully know what I’m saying when I say this..
At age 14, you’re on nobody’s radar and on the most part I don’t think it’s enough money for anyone to give a shit.
If its cash and not earned doing something wrong/illegal, I’d pocket the lot and keep my mouth shut.
If the above applies and you’re still concerned, give the physical cash to a grandparent or someone and ask them to transfer it to your bank account as a gift.
How much do you think youÔÇÖll do in the tax year?
Or is £1,220 it?
If itÔÇÖs just ┬ú1,220, I assume you donÔÇÖt have any other income, so you donÔÇÖt have to do anything as itÔÇÖs all covered by personal allowance and you donÔÇÖt pay NICs at age 14.
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Mate you bought a couple of sets of golf clubs, that were clearly priced incorrectly, and sold them for market value or close to it. This is not a business it’s a lucky win, take the money put it towards something, keep for a few years and buy your first car, whatever you want mate. Stay in school, go to Uni, and work towards the long term financial independence we all seek.
How do I get in on the ‘buying things for 87p and selling them for much more’ business model?
Everyone talking about golf clubs is hilarious [Cancelled order](https://imgur.com/a/bxyFBuA)
Getting lucky with an Amazon order is hardly a business.
IÔÇÖd suggest jumping on Amazon and buying a basic bookkeeping book to record your incoming and any outgoing money in for now (you can also find spreadsheet templates thatÔÇÖll do this online) check out the links others have posted about self assessment.
Also keep all receipts and invoices for anything to do with your business (anything you buy to use for it, payout for it or charge someone for), this will make any tax stuff you need to do much easier for you.
And on another note it would have taken me over two years to earn that much on my paper round when I was your age so well done!
I am guessing this is not going to be a steady income so you shouldn’t worry about it.
Well done kid! Get those P’s! Lol
Sorry, I just read all the comments. I understand the clubs ain’t it. That’s cool you got other things going on. Looks like you at least got some advice in the entrepreneurs sub.
All I know is the 12.5k threshold for someone my age who is in ky circumstances, I imagine yours would be similar but the guys over at the entrepreneurs sub should help you more.
Keep winning mate!
Very nice, what’s your business?
You are not 14, no 14 year old gets himself custom build computer sets from the US or asks for the Swatch customer service. Judging by your posts and your reluctance to say what the business is, you are simply a troll.
Just wack it in the bank. Don’t worry about it untill you turn 16!
Students in the UK don’t pay tax on earnings, earning over 1k is taxable for adults.
I wouldn’t say you have to declare it at all, ask a parent to invest it into your future, and it looks like it can be bright. Well done kid. Live the dream.
Wait until youÔÇÖre earning is a bit more established and then worry about this stuff. If you think your idea has legs, and seems like something is working, then these headaches will need salt with but for now focus all your energy on the business.
If you could make a consistent amount like that every day then you can just pay someone else a small amount to deal with it all.
Good luck in whatever it is youÔÇÖre doing.
There is plenty of heroin for everyone
To start, is your “Business” a limited company registers to company house?
Bruh, you’re 14 and make 600 a day?
Let me know when you’re an adult and need a bodyguard lol
ThatÔÇÖs fantastic, well done!!
I believe youÔÇÖre too young to pay tax – happy to be corrected.
Why do you want to use business banking?
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You need to open llc, register for vat while you are at it.
Get an accountant! They can help your business!
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Enjoy the ┬ú1200 sonƒÿéƒñú
OP, your business isnÔÇÖt to do with programming prices on websites is it?