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being employed AND having a business

dazco
dazco Posts: 19,261 Forumite
I am employed and do not wish to give up my job.

How would the tax work if I started a business of my own as well.

Could any loss (should it run at a loss) accrued by my little company be offset against my PAYE tax?

Thanks
S!!!!horpe

Comments

  • fengirl_2
    fengirl_2 Posts: 4,530 Forumite
    The two jobs would be separate and you would need to self assess to declare the profits or losses of the business. Provided the business was not incorporated, you could offset the loss against your PAYE income.
    £705,000 raised by client groups in the past 18 mths :beer:
  • beard0609
    beard0609 Posts: 223 Forumite
    Hubby did this until he was made redundant... We were also told losses could be offset against his PAYE but I am waiting for his P45 to come through so I can sort it out... You may have to pay Self Employed NI two popunds something a week.... I'm waiting on a reply for that too!!!
  • dazco
    dazco Posts: 19,261 Forumite
    So am I also right in assuming that if the combined earnings take me over the threshold I will be paying the higher rate tax?
    S!!!!horpe
  • fengirl_2
    fengirl_2 Posts: 4,530 Forumite
    Yes, all your income is added together to decide what rate of tax you pay.
    £705,000 raised by client groups in the past 18 mths :beer:
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