company registration

There is no need to register your name at companies house. You may wish to check the availability of a limited company name at companies house to make sure you could setup a limited company in the future (should you want to). Just a point to note. I have recently discovered that many people who change from employed to self employed do not check that they have not overpaid National Insurance so make sure you do this when you do your tax return. Barr Stevenson Chartered Accountant http:/www.our-accountants.co.uk
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Barr Stevenson
Chartered Accountant
http:/www.jsaccountants.co.uk

good point that. i will be running my business part time (online selling only for time being, then mail order with leaflets going out with local papers), i will still be employed full time in my current job. how will this affect me?
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The employed income will be taxed as normal and you will suffer Class 1 National Insurance. You will then have to calculate your 'profit' from the part time self employed work. This profit is then taxed and you also pay class 4 National Insurance on an element of the profit at a rate of 8%. As a self employed person as well you will also need to register this fact with the Inland Revenue and they will make you pay Class 2 NI (£2.05 per week flat rate). As you can see you will be paying alot of National Insurance if you make good money. There is a rather complicated formula for working out the maximum NI you should have paid and you use this to check to see if you have overpaid NI. Please note that this overpayment is not calculated on your Tax Return and hence is a separate exercise. Don't forget to register as self employed with IR (£100 fine if not notified within 3 months of you starting!!) Barr Stevenson Chartered Accountant http:/www.our-accountants.co.uk
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Barr Stevenson
Chartered Accountant
http:/www.jsaccountants.co.uk

Barr, does he need to register as self-employed even if he's still working full-time in his existing job?? James
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James Thomas
james@phoenixconcepts.co.uk
07968 048107
http://UK-121712.yourteambuilder.com

Yes - if you have self employed income you need to register. As a self employed person you will need to fill an annual tax return to declare this income to the tax office, it wont be deducted via the PAYE system which deals only with your income from your employer. Regards,
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James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773

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Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT

As James says Yes, This is always an area which catches people out. Your question suggests you haven't yet! So better get to it phone on 0845 915 4515. Good luck. Barr Stevenson Chartered Accountant http:/www.our-accountants.co.uk
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Barr Stevenson
Chartered Accountant
http:/www.jsaccountants.co.uk