Do i need to be self employed?

[Zenicman]

HI


I need some advice, I am working full time for a company but I am also doing some freelance work outside of this. I am been paid via cheque but do I need to become self employed? If I do should I become an Ltd? Any advice would be helpful.


I am only earning about £400 a year from extra work

 

[julie001]

You need to register with HMRC and fill out a tax return each year declaring your extra income. You can do this yourself fairly easily online, or can get an accountant to do it for you.

No need to become a LTD company- this will probably cost you more than the £400 a year you earn in accountants/admin fees alone!

 

[garytulley]

£400 a year? Is it even worth mentioning to HMRC?

 

[Zenicman]

I want to make sure I am all legal and I do not have any come backs so doing this would probably be the best option and I suppose it gives me the chance to have some more income.

 

[DeanCo]

HI


I need some advice, I am working full time for a company but I am also doing some freelance work outside of this. I am been paid via cheque but do I need to become self employed? If I do should I become an Ltd? Any advice would be helpful.


I am only earning about £400 a year from extra work

There is no earnings limit for being registered for self employment. Registering is now very easy as you can do it online and there is very little administration for self employment at this earnings level. By avoiding registration you are risking, possibly, £100's in penalties. You should register ASAP.

For advice about going Limited see Which Trading Structure?

 

[wagstaf]

make sure you register with HMRC and pay NI contributions (can do by direct debit or cheque). You can reclaim NI contributions beneath the threshold. Check your contract of employment as it may not allow freelance work whilst in their employment.

 

[Anna Chandley]

At that level of income you would not need to pay Class 2 NI and should complete the small earnings exemption form

http://www.hmrc.gov.uk/forms/cf10.pdf

 

[stugster]

At £400 a year, is it even worth doing the work at all?

 

[julie001]

At £400 a year, is it even worth doing the work at all?

Tax paid (probably) < £100... sleeping easy at night knowing your business is above board... priceless

 

[Bmcuk]

Hi there

Before jumping in it is important to know if you are classified as a worker.

you state you do freelance work outside of your main job, is this for any client ? or for the same one. if for any person then yes you would need to be registerd as self employed but can do this within 3 months no later.

Would be no real need in incoperating your company at this stage, Incoporation has its benefits but also has more stricktness with accounts. But its no big deal really.

My personal opinion only register if its constant!

Just realised the £400 a year Na dont bother although you will get some totallay disagreeing and stamping their feet with disgust stating you should register lol But NA!

 

[stugster]

Tax paid (probably) < £100... sleeping easy at night knowing your business is above board... priceless

I actually meant doing the WORK, not doing the Tax.

 

[DeanCo]

if for any person then yes you would need to be registerd as self employed but can do this within 3 months no later.

There is no longer any time limit for registering. HMRC now say you should register ASAP - http://www.hmrc.gov.uk/selfemployed/register-selfemp.htm

 

[Bmcuk]

Ahh used to be 3 months then after that a £100 fine. never known anyone to be fined though

There is no longer any time limit for registering. HMRC now say you should register ASAP - http://www.hmrc.gov.uk/selfemployed/register-selfemp.htm

 

[Hedgie]

£400 a year? Is it even worth mentioning to HMRC?

Ermmm.....yes, otherwise you are committing fraud.

 

[anna1]

yeah i do favor you have to register otherwise you are doing fraud as per there point of view

 

[Scott-Copywriter]

Kevin is back! I haven't seen him in ages. Must be years now surely?