Starting a business whilst employed part-time

[weelynn]

Hi Guys, I am new to this so please bear with me. I am intending to start a new business soon(hopefully). It has nothing to do with my work so that is not a problem. However it is the tax side of things that I am worried about. I only work part-time so at the moment do earn enough to pay tax. I understand I have to register a business with 3 months of starting. My question is this. Would registering the business ( making me self-employed I guess) interfere with NI and sick pay, holiday pay etc withing my part time job. I have 25 years with my employer and wonder how this leaves me standing with redundancy also.
Also how would this work, would i need to inform my employer of my new venture so he could change NI contributions etc or is it all done seperately.

Thanks for looking.
Lynn

[keymo]

Not an expert but you would need to fill a personal return every year. You account would request a copy of your P60 in order to combine Tax and NI. I am both employed and have a business and to be honest you dont need to inform your employer unless your doing this in work time which I guess your not.

[accountantpete]

Hi Lynn.

1) As Keymo says there is no need to inform your employer and all you need do is enter the profits figure in the tax return together with the P60 details and the Revenue will work out the tax liability from there. They will not contact the employer.

2) This won't affect any statutory rights that you have to sick pay etc.

3) You may have to pay Class 2 NIC at £2.30 per week depending on your total earnings -the Revenue will send you a form about this and it is paid via Direct Debit and does not go through the employer.

[weelynn]

Cheers for that guys. A load off my mind. Tell me though, once i have registered, will the tax office contact me, or will I have to request forms etc.
Lynn

[accountantpete]

Cheers for that guys. A load off my mind. Tell me though, once i have registered, will the tax office contact me, or will I have to request forms etc.
Lynn

No they will send you a couple of booklets with forms attached.

They will also send a tax return to you in May - assuming that you register the business before 5/4/09.

[Jonathan1979]

It should be relatively easy to sort out the tax forms, go to the tax returns website and they have good information on part-time worker and business listings as well. Good question though Weelynne, personal tax returns are a real hassle, but everyone has to do them.

[ShortSite]

Hi Weelyn, i went throught the same process with my new venture too as im in the same situation as yourself. It was relatively painless but also if possible get yourself an accountant to help with any queries, mine gives me lots of advice etc to what to do to help claim tax back on lots of things i never thought of, petrol, house bills, PC equipment etc?

Mine costs jsut £250 a year so isnt too bad considering hes saving me this much in claiming tax back etc.

Hope this helps.
regards,
Simon.

[debola]

Hi Lynn... just in case you don't fancy trawling through tax matters etc on the hmrc website and would rather devote your time to building up your business, i'd be happy to help. As I'm just starting out as an accountant/bookkeeper, I'd provide consultancy for a nominal fee

[bizopp]

well, such businesses are offering us good amount at home. so, tax and other stuffs can be determined later. first start the business.

[celticquest]

Hi Lynn
I have been self-employed for two years with two other part-time jobs and this year started a partnership.
Tax returns are dead easy if you do it online.
All you need to do is register for self-assessment on hmrc website then once a year input info for self-employment (income and expenses), income from other employment and tax paid on said other employment. It then calculates your tax for you.
Hope this helps x