Do I need to be a sole trader

[andyjarrett]

Hi.

I am a newbie to the forum and starting up on my own. I have searched the forum already but couldn't find an post which matched my situation (if there is sorry for the double post)

I am currently fully employed web developer but looking at doing extra work in the evening and weekends. I doubt my income from the extra work will go over £5k/annum and was wondering if all I need to do is self-asses or do I need to register as a Sole Trader with HMRC?

Regards, Andy

[elainec100@cheapaccounting]

yes you do as you are carrying on a business

[elainec100@cheapaccounting]

this should help:

http://www.ukbusinessforums.co.uk/forums/showthread.php?t=161946

[Stretchy]

Hi.

I am a newbie to the forum and starting up on my own. I have searched the forum already but couldn't find an post which matched my situation (if there is sorry for the double post)

I am currently fully employed web developer but looking at doing extra work in the evening and weekends. I doubt my income from the extra work will go over £5k/annum and was wondering if all I need to do is self-asses or do I need to register as a Sole Trader with HMRC?

Regards, Andy


You cant self asses if you aren't registered as a sole trader anyway mate.

[elainec100@cheapaccounting]

You cant self asses if you aren't registered as a sole trader anyway mate.

you can complete a self assessment - the self employed supplement is one part of the self assessment

[Stretchy]

you can complete a self assessment - the self employed supplement is one part of the self assessment


I stand corrected.:redface:

He couldn't file additional income as just a full time employee though could he, in these circumstances?

[andyjarrett]

You cant self asses if you aren't registered as a sole trader anyway mate.

Thats quite simple :)

To give you some background I was looking at going self employed but then a "friend" (I know, not the best person to get advice from hence now here) says if you are only planning on making a small amount then just complete a tax return each year declaring what your taken?

[Stretchy]

Thats quite simple :)

To give you some background I was looking at going self employed but then a "friend" (I know, not the best person to get advice from hence now here) says if you are only planning on making a small amount then just complete a tax return each year declaring what your taken?


Dont take my advice either mate, wait for Elaine to come back. I am pretty sure you will need to register with HMRC though.:)

[florenceij]

Yes I agree you do have to register with HMRC and you will be required to fill a self assessment tax return form at the end of the tax year. In this form you will be asked about current income from employers and total tax paid there will be a section for declaring supplementary income from freelance work etc. They will work out Tax due. This form can be completed online or via post (paper version) both have different deadlines.

You will have to notify HMRC within 3 months of trading.

[elainec100@cheapaccounting]

I stand corrected.:redface:

He couldn't file additional income as just a full time employee though could he, in these circumstances?

no because he as he has said he is carrying on a business

[elainec100@cheapaccounting]

Thats quite simple :)

To give you some background I was looking at going self employed but then a "friend" (I know, not the best person to get advice from hence now here) says if you are only planning on making a small amount then just complete a tax return each year declaring what your taken?

Ah yes ... the person down the pub advice :D:D:D

We do get a lot of that :p