Hi,

Background:
I'm in the process of setting myself up as a sole trader doing IT Maintenance\Support and suchlike.
I am employeed full time, and i currently pay the middle rate of tax via my employer and if all goes according to plan, i'm not that far off from the higher rate.

Plan:
I've been doing a lot of extra work for people in my spare time, and i just want this to be under a business so that i can pay tax for it accordingly and not get a stonking great tax bill in one hit. So, the figures - I'm not bringing in that much each year it averages between 1-3k per year. So, i could apply for exception from paying class 2 NIC contributions. Am i correct in thinking that the other thing left to pay is INcome tax? If so and my profit is under 4k, does that mean i dont pay income tax on my profit as its below the 6k personal allowance?

I hope somebody understands what i mean here - its all new stuff and i cant really afford or justify an accountant for the small amounts of work i'll be doing. The overall plan is if more work comes in, then i have the structure and methology in place to make it successful and organised.

Cheers,

Tom