Going self employed

TechFox

Free Member
Jul 12, 2005
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Southampton
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?
 

Jenni384

Free Member
  • Oct 1, 2007
    4,851
    1,539
    Cheshire
    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 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.

    :)
     
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    David Griffiths

    Free Member
  • Jun 21, 2008
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    Cwmbran
    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.
     
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