Hey there, need some advice :)

[ThierryR]

Hi all

I am in the process of setting up a new business, and was hoping to get some advice :P

I am currently registered as self employed as I was working as a subby, but I will be entering normal employment this month.

The business I am setting up will be my 2nd income, although very serious. The aim is to not take anything out of it in the way of wages until it is running to a sufficient level. (e.g. paying NI etc)

Question 1.) If I am registered as employed, what do I do about my business, as I cannot register as employed AND self employed.

Q2.) I will have 2 businesses within a business. basically, I am a retailer....BUT I also want to offer a dropship service on a completely separate site and don't want the two being linked with each other Can I Still have them both going to the same business bank account? and do they both need to be registered as separate businesses?

I will no doubt think of some more stupid questions soon :P lol

Cheers xx

[Indizine]

You can be emplyed and self employed. You must declare your other earned income in any case, but as its a business, you have 3 months in which to inform HMRC.

You can also run both businesses but still have all the transactions and paperwork going through one set of accounts and one bank account. It depends how much separation you actually want.

When you are self employed, you will register as such, so it doesn't matter whether you are running 1 business or 3, HMRC will need you to do the one tax return every year.

Whether you take any personal income from it is irrelevant. The minute you hit the thresholds, you are liable to pay Tax and NI where due, and seeing as you are already going to have a paid job, your self employed income will be taxed from the off, ie your allowance will be used in your PAYE income. Also, if your paid employement plus your self employed earnings (whether drawn or not) when combined reach the 40% tax threshold you will be paying more tax.

It will be worth your while seeing an accountant and discussing forming a Ltd Co. as an option to see, according to your employed wage, and your projected earnings for he businesses, whether being self employed and going limited would be more financially advantageous for you.

I'm sure accountants will be along later today to add any other info and advice.