Own business and tax and NI??

Frances_O

Hi, I'm not sure if this is in the right place or not. Also, sorry if this questions already been asked before!
My partner works full time and earns about £13000.
He's recently started doing web design, and he usually gets about £200 per job. He's going through all the procedures of giving invoices etc, but he's a bit worried about whether or not he needs to be paying tax? He's only likely to do about 10-20 sites throughout the year, which means he'd be earning between 2000-4000 for the web design business. He's just wondering whether it's worth doing if he has to pay out quite a bit of tax. He thinks he needs to keep 25%, and he's also unsure as to whether he'd have to fill in tax returns for his normal job too.....? Hope this all makes sense......!
If anyone can help, it'd be hugely appreciated, as he's starting to get himself a bit stressed out thinking about it and trying to work it out.....!
Thanks
Fran

Frances_O

Anyone........??
x

tru

When I went self-employed I rang my local tax office, they answered all my questions in plain English ;D They offered a free short course in filling in my tax return and basic book-keeping. When you register as self-employed they send you a folder full of info

Frances_O

Thanks little elf, I'll pass this on to my partner....!

mk_webman

If his current employment is subject to PAYE he will probably only have to fill in the self-employment extra pages. I get a pension (retired early on medical grounds) and this is on PAYE so I just fill in a short extra return for my web design work. It's easy if you keep your records straight and especially if your turnover is less than £15,000 they don't need detailed breakdowns.

I bought protax lite from tax.co.uk (Forbes - they wrote the IR in-house software apparently) for £10 - it takes you through the necessary steps, calculates, and lets you file online. Worth every penny! As noted in previous posts, the IR are very helpful if you ask. I have phoned up to check what I owe a couple of times cos the statements they send out are not particularly user-friendly and have been impressed by the personal support.

System

If his income from his job is £13000 then he will be liable to tax at 22% on his income from web design. Get him to call his tax office and ask about becoming self employed. He will have to complete 1 tax return which will require details about both sources of income. The staff at the tax office will be more than happy to help him whether he phones or calls in personally.

bridiej

Definitely get in touch with your local tax office.

I was working a job and paying PAYE but also did some self employment at the same time - all that happened was filled in a self assessment form at the end of the year and tax was calculated for the self employed bit.