Full time work and self employed on side, tax?

[Chris]

Hi,
I currently work full time for a housing association but i am looking to sign up with Napit separately so i am able to sign off the jobs i do for myself outside the 40 hours.
Ive got quotes for public liability and an install for Napit to inspect but i was wondering on the tax situation once i do this.
Will i be taxed more on my full time job once ive set up my own part time company?
Will HMRC have my pants down on the earnings from my part time work?
any tips/advice appreciated.

 

[Nigel]

Your tax rate will be in line with everyone else. So if your SE earning will mean that you will earn enough in the FY to take you into the next tax bracket then your earning over and above that threahold will be subject to the tax that that threshold demands.

You will need to refister as SE with HMRC and complete a self assessment tax return each year detailing what you have earned as PAYE and as SE with taxable deductions taken off for expenses. If there ks a profit you will have to pay tax on that profit.

 

[Gavin John Hyde]

If in doubt, see an accountant, you usually get a 1/2 hour or so free, worse case you have to fork out for an hour (mine charges £35 per/hr) of advice but if will save you a lot more in the long run, as if you have self employed earnings, then things like mobile phones, house broadband, etc can all be counted against any profits, i in effect rent my kitchen table to the business at a cost of £50 per month, that includes half the broadband and electric etc... all helps to keep it in your pocket and not the tax mans.

 

[Squid]

My girlfriend has been self employed for 30years and did a PAYE job part time, it was a major pain in the rear regarding sorting out her taxes and they kept getting it wrong.

 

[Wilko]

You will need to refister as SE with HMRC and complete a self assessment tax return ...

True in oh so many ways

 

[Des 56]

There is little problem being employed and self employed
I have done this on many occasions,the practicalities have been covered well by essex

 

[Octopus]

You will have to do a tax return every year.

Keep all receipts for everything you buy - for resale to clients and overheads............

And most importantly you need to save at least 30% of every £ you earn as this will be the minimum tax & NI you will need to pay...

Consult an accountant is my advice

 

[Deleted member 105166]

Hi,
Will i be taxed more on my full time job once ive set up my own part time company?

It may be better not to set up a company, but to do work as a sole trader.

Hi,
any tips/advice appreciated.

Definitely invest in a good accountant, who will work out what's best for your circumstances - worth their weight in gold.

 

[Nigel]

It may be better not to set up a company, but to do work as a sole trader.

Agree 100%. Do not set up as a Ltd company.

 

[Chris]

Sorry i meant a sole trader not a ltd company but thank you for re assuring me.
Seems like an accountant will be my best bet then.
Thanks everyone.