Going self employed

[TechFox]

I am doing a little work on the side. It won't make me much money but as I understand it to operate within the law I will need to register as self employed. As I understand it, if I am earning less than £4000 a year I can avoid paying the £2/week. Any advice?

[Jenni@FarrantFrost]

I am doing a little work on the side. It won't make me much money but as I understand it to operate within the law I will need to register as self employed. As I understand it, if I am earning less than £4000 a year I can avoid paying the £2/week. Any advice?
you've pretty much got it :)
Have a look at HMRC (http://www.hmrc.gov.uk/selfemployed/iwtregister-as-self-employed.htm)for registration details
Make sure you tell them you want a Small Earnings Exception from Class 2 NI (the £2 a week)
Keep records of your income and expenses
You'll have to fill in a tax return.

:)

[TechFox]

Thank you!

[TechFox]

Do I need to be VAT registered? I thought you could earn a certain amount before you had to become VAT registered and start charging your customers VAT but I don't fully remember.

[ryanlundwebsolutions]

its something like 64k a year before you have to start payin vat. wouldnt worry so much about it unless your gonna be making a fair amount from your 'on the side' work:)

Ryan

[TechFox]

Thank you!

[David Griffiths]

The VAT registration threshold is £67,000. If your customers are all VAT registered businesses it could well be to your advantage to register even if you are well below that as you can recover VAT that you are charged on your business expenses.

It's a value judgment, and I'd guess that at £4k a year turnover it wouldn't be worth it. If things take off, then that might change.