Self Employed ?

[IMEX Sourcing Services]

Hi,

Lets say someone wants to start a new business as a sole trader and officially he will need to register with the Inland Revenue as Self Employed, but assuming that he also wants to work for someone also, what exactly should his status with IR with?

In other words, is it actually possible to do both (working for someone else and as a sole trader?)

Any help would be most appreciated.

Ash

[mumper]

You can register as a sole trader with the IR and be on PAYE with an employer. I don't think there is a problem with this but I'm sure other members know better and will correct me if I'm wrong.

[Magsite]

I'm in exactly the same position.

I rang up the IR who took my details. They said if I earned less than £4000 I would not have to make any additional NI payments in addition to my normal work. If I earned more I would have to pay more NI seperatley

I asked if I needed to inform my current employer of the extra 'job.' They said there was no need at all. I've just been to Loyds TSB to open a business account. All I need to do now is work out how income tax works!

[stagetec]

Don't think anyone on the planet knows how income tax works and even if you did, his Tonyness would change it next week and you'd have to start learning all over again.

Andy

[MinuWeb]

I asked if I needed to inform my current employer of the extra 'job.' They said there was no need at all.
This also depends on the contractual terms of your employment.

[Joyous]

Hi Ash

As John (aka Mumper) says it is possible for you to be employed by someone as well as self employed on your own account. In fact it's an idea for you to keep your job, if you have one, until your business grows enough to support you.

Regarding the tax - any taxable profits from your self employment are simply treated as an additional source of income to your employment income and taxed at your marginal rate.

Regards

Joy

[Magsite]

Anyone know of a site that explains about the accounting?

I'm just wondering if I spend money on advertising does this help keep my taxable income down?

[Joyous]

Advertising is a business expense and therefore tax deductable.

If you're looking for a site giving details of other taxable expenses look here:

http://www.fastlinksolutions.co.uk/whatcani.htm


If your looking for a site for how to do your books look here:

http://www.nrbarton.co.uk/Bookkeeping/Intro.html

Regards

Joy

[Magsite]

Great sites thanks JOY!

[IMEX Sourcing Services]

Cheers Joy,

That was very helpful.

Ash

[autolycus]

They said if I earned less than £4000 I would not have to make any additional NI payments in addition to my normal work

AIUI, that limit is based on your profit from self-employment, not your actual turnover.

Also note that if you expect your profits to be below that limit and therefore want to claim an exemption from paying self-employed NI contributions, then you need to fill in a dispensation form and send it to HMRC.

Dave.