Question about being self employed whilst being part time employed

Kelly Cairns · #1 (**permalink**) 02-09-2008, 12:24

Not sure if this is the right section, but I wonder if someone could tell me where I stand in terms of registering as being self employed when I'm already employed as a p/t employee?

Do I just fill out the usual forms from the ILR when registering a small business?

Indizine · #2 (**permalink**) 02-09-2008, 12:29

Yes, register as a sole trader as normal, but you will pay tax on the total amount you earn in the year, dont forget. Something to consider if you are near the 40% threshold.

boxby · #3 (**permalink**) 02-09-2008, 12:37

Quote:

Originally Posted by Indizine

Yes, register as a sole trader as normal, but you will pay tax on the total amount you earn in the year

Profits, rather than drawings.

Kelly Cairns · #4 (**permalink**) 02-09-2008, 13:00

Thanks!

Unfortunately (is it?) I'm no where near the 40% threshold so I haven't got that to worry about at least!

Do you get taxed on a regular basis being self employed or is it an annual fee? I'm new to taxes etc so don't really have a clue!

It's so easy to get carried away with the "i've got my own business" without thinking about the most important things, MR TAX MAN!

Indizine · #5 (**permalink**) 02-09-2008, 13:08

if you draw money out then you are drawing out your profits (hopefully anyway!).

boxby · #6 (**permalink**) 02-09-2008, 13:22

31 Jan & 31 July are the payment terms. You pay taxed based on the profits in your accounts.

Tell me when you started, what your year end is going to be, and i'll let you know what you have to pay and when.

Kelly Cairns · #7 (**permalink**) 02-09-2008, 13:26

I haven't "officially" started and haven't got a projected forecast, thanks for you help though!

tax-sorted · #8 (**permalink**) 02-09-2008, 13:38

You need to register as self employed within 3 months of starting or get a £100 fine!

Kelly Cairns · #9 (**permalink**) 02-09-2008, 13:44

I know, i only started four weeks ago, heading towards the deadline pretty rapidly!!

boxby · #10 (**permalink**) 02-09-2008, 14:38

Well, for the first year, you'll be due tax on the profits from when ever you start to 5th April 2009, and this will be payable on 31 January 2010.

Second year, you'll be due tax for the first 12 months of trading. And this will be due 1/2 on 31 Jan 2010 and 1/2 on 31 July 2010.

and after that you'll be on your normal year end accounts.

You will have paid tax twice on the period between now and 5th April 2009, you get this as a dedcution/refund when you cease trading.

Your first tax return is due either september 2009 or Jan 2010 depending on whether you do it manually or electronically.