I want to start an Online Business but how will this effect the Tax I pay?

Not sure how old you are, but many young people have this obsession about starting an online business and it all comes to nothing. Either nobody wants their home made items or else they discover that they cannot buy goods cheaply enough to make selling them on to others worthwhile. Online business also involves shipping. I am amazed by the occasional post from someone who has just sold their very first item on eBay and have absolutely no idea how to get the item to the person who has bought it and paid for it.

I have an online business and I am actually doing pretty well for myself. And honestly, it hardly cost me anything to start it. If you are serious about starting an online business, check out this site. I can promise you that you will not find a cheaper start with this much traiining and information that you can use for just about any online business. http://illuminati.dotcomsecrets.com/x/sp/ktriest

Having a second job will not affect your tax free allowance. Your tax code will remain the same. Anything you earn over your allowance is taxable at 20%.

Depends how much you earn with the new job and how much time you spend doing it. Also depends what kind of business it is, some businesses are VAT exempt for example and that would be one less thing to worry about. You'll need to declare one of them as your main job, you're allowance wont be affected, you'll still be entitled to that. Running your own business is almost always tax efficient, you can offset so many things against your tax bill that you end up paying very little tax compared to an employed role. Make sure you get a good accountant and your tax bill will be minimal. Edit: You can choose whether you have a business bank account or not, it can make things a lot easier but as long as you run the business through a seperate account to your personal affairs you should be fine. The nature of your business will be subject to VAT but you only need to register for VAT when your business earns more than £77,000. Some people register for VAT anyway, it's up to you, your invoices etc will look more professional if they have a VAT number on them and may give the impression that your business earns more than £77,000 increasing the reputation etc, there's loads of little tips you can try. Your self assessment should be pretty straight forward and it would be good practice to set up some spreadsheets for profit and loss and cashflow etc to get yourself into that mindset. Note down anything you spend in relation to the business, even pre-startup and keep all receipts. If it's a Ltd Company you're setting up, any money you put into the start up of the business, you can take back as tax free income before you even start paying yourself a salary as it's classed as a Directors Loan. Another thing I'd recommend is to get onto a free Business Link Startup Course if they still run them, they are fantastic. Good luck, it's a tough market to be in but keep your ambitions high and your costs low, the rest is just a question of how much risk you are willing to take.