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Broadly, you are likely to be running a business if you have a regular, organised activity with a profit motive, which continues for at least a few months.

If the work is one-off, or very occasional (say, a few times per year), or not very organised, or of very low value (say, under £2,000 per year), then it might qualify as casual income.

Registering as self-employed in this way does not mean that the tax office will tell your employer about your sideline business, as your own tax affairs are confidential.

Tax is always calculated on total income, and there are no allowances or registration exemptions specific to each type of income.

For example, if your employment earnings are over £10,000, and your business/casual income is only £500, in most cases there will be tax to pay on that income and so you must declare it.

All figures have been updated for businesses starting in the tax year ending 5 April 2015, who will be required to submit their first tax return by 31 January 2016.

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There are some small differences in the tax system between running a business (also known as “trading”, being “self-employed”, or being a “sole trader”), or just having some extra casual income.

If you are submitting the tax return on paper, assuming the box numbers stay the same, it goes in boxes 16 and 17 on page TR3.