billabong started this topic @ 23:50 on 31/07/2006
Hi,
I have a few questions regarding being employed and working on the side.
In my current full time job i work a shift pattern which gives me alot of time off.
My plan is to set up my own business in the domestic building trade, fitting in the jobs in my spare time for the first 12 months. This way i can get a good idea of the amount of work there is before quiting my main job.
1 - Do i need to register as a self employed sole trader ? even though i am employed full time in my main job. Is it possible to be classed as both ?
2 - How would this affect my annual tax returns ? with it being my second form of income.
3 - Is it essential that i get insurance, as a self employed tradesman working in peoples houses ?
Any advice would be much appreciated,
Thanks
RE: Business startup on the side
mdlong | 01/08/2006 08:52 AM
Hi,
contact your local business link (www.businesslink.gov.uk) they will be able to give you all the advice you need.
Mike
RE: Business startup on the side
just.b | 01/08/2006 09:01 AM
I've been there, and did it for over a year too to build up my business
1. yes register, ridiculously easy. one form to fill in from the inland revenue, then you will about £2 a week contributions (I set up a direct debit).
2. you will have to fill in a self assessment form every year. make sure you keep all receipts and enter incomings and outgoings on excel for instance from day 1.
2. i would recommend insurance, i am sure there are some specifically for your line of work
the inland revenue offer free courses for self employed. I attended a couple of them and it's definitely well worth the time.
good luck
Bea
RE: Business startup on the side
James Smith | 01/08/2006 09:21 AM
I should point out you wont need to pay class 2 NI for the self employed (the £2.05 per week) unless you earn more than £4.5k from your self employment.
On the tax return front it is a new schedule called "self employment" to go along with your normal return it sounds like you make in any case.
Regards,
------------------------
James Smith
Chartered Accountant
www.jamesesmith.co.uk
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Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT