Burning the candle at both ends -

javahollic

Hi all,
I'm fortunate enough to still be in a full time job in these trying times and yet have an itch and have just registered as a Sole Trader to cover part time employment that I do for kicks. I've seen plenty of stuff about just being a Sole Trader, but nothing that seems to reflect this scenario. Does it matter, its just income but a separate source? Any nuggets of wisdom anyone can share (simplications/ do's/ dont's!) are appreciated!

jimbow25

If you are employed and self-employed you pay tax and National Insurance on both incomes.

Your full time work is taxed through your employer's payroll as normal. You will also have to pay tax and NI on the other income by completing a tax return.

The tax you pay on your sole trader income will effecitvely pick up where your employment income reaches- so if you earn between roughly £6,000 and £40,000 from your full time job you'll pay 20% tax on any extra income until you do reach the £40,000 limit, and anything above that will be 40%.

Basically the same tax principles apply as for anyone who is self employed but you'll also complete a section on the tax return for your employment income. Take a look here:
http://www.hmrc.gov.uk/startingup/index.htm