Working for self as well as full time job

ricrac

Hi,

Needing extra income I am planning to build a website offering my services as a sole trader, this is to top up my full time job wages.
While looking at the standard sites I cannot find what to do regarding taxes etc in this position, I can only find information as one or the other (employed or self employed).

Any tips or links please.

Cheers

Rich

PlutoinCapricorn

It is very common for people to have a full time job and do extra work as a sole trader to top up their income. They self assess each tax year, and unless they move into the 40% tax bracket pay 20% income tax on their profit in two installments per year in addition to their PAYE tax.

Class 2 National Insurance is £2.40 per week, but you can claim exemption if you think that you will earn less than £5,075.

www,businesslink.gov.uk is a very useful source of free advice, information and workshops.

lozza1985

I work full time as well, and am also registered self employed for avon, if you ring the self employed line, they are really helpful. It doesn't affect my tax code for my job, you'd just need to check that theres nothing in your contract to prevent you becoming a sole trader, usually not a problem if its nothing to do with your job.

ricrac

Many thanks, and if my boss has a problem he'll need to give me a pay rise or shurrup.

chrisaj

I can never understand companies that restrict you. They want you to sign a contract for the hours you do but own you for 24/7. I was told a while back that's it's illegal for companies to actually stop you doing other work outside their time.

lozza1985

Depends what your job is and what your extra work involves - you can hardly blame a company for not wanting you to do the same work freelance as then you could be stealing work that would otherwise go to them.

PlutoinCapricorn

In theory what people do in their own time is their own affair, but there are three possible problem areas if they get extra work or a second job:

- being too tired and distracted to cope with the main job. I have seen this for myself in someone who worked in an office during the day and a bar at night;

- using the facilities at the main job for the extra work: time, internet, phone etc.

- conflict of interest. This is likely to be a problem if both main and extra work are in the same area. You can't expect your employer to be happy if you are working in competition or for rival companies. They may be afraid that you will use information on their database.

These things have a way of coming out, so it is best to tell the employer if possible.