Help on being employed and self employed

dafuggy

Hi guys

i am working for an IT company at the moment that gives me school holidays off. thats good but i hate all that time off so was thinking of being self employed to, so during the the holidays i can work for an old boss who is self employed. performing the in small medium bussinesses.

i have been told that i will get taxed alot on self employed earnings.
i was thinking of going self employed a while ago but was worried about getting work or reather not getting work. my old boss can pass me work and is happy to do so but cant employ me at the moment.

i think at the moment i can write off any money in expenses as its just my time that will be billed. also i will need a car for both jobs so serviceing, insurance, tax and fuel needs paying. also cloths, tools and equipment for doing the job.

as time goes on i will start keeping a profit i think so quite quick but what is the taxaition issue i will have. does it still work on the earnings over 40k per year i get the 40% hit or is this different?

my plan is to start with weekends/holidays, then try and get a full day off per week from my full time employer untill i get to the point i am fully self employed.

hope to hear back soon.
regards

dafuggy

LittleVoice

dafuggy wrote: »

Hi guys

i am working for an IT company at the moment that gives me school holidays off. thats good but i hate all that time off so was thinking of being self employed to, so during the the holidays i can work for an old boss who is self employed. performing the in small medium bussinesses.

i have been told that i will get taxed alot on self employed earnings.
i was thinking of going self employed a while ago but was worried about getting work or reather not getting work. my old boss can pass me work and is happy to do so but cant employ me at the moment.

i think at the moment i can write off any money in expenses as its just my time that will be billed. also i will need a car for both jobs so serviceing, insurance, tax and fuel needs paying. also cloths, tools and equipment for doing the job.

as time goes on i will start keeping a profit i think so quite quick but what is the taxaition issue i will have. does it still work on the earnings over 40k per year i get the 40% hit or is this different?

my plan is to start with weekends/holidays, then try and get a full day off per week from my full time employer untill i get to the point i am fully self employed.

hope to hear back soon.
regards

dafuggy

HMRC would combine your income from your current employment and profit from your self-employed enterprise so that you would be taxed on the total to the same amount as if you had earned all of the money in your PAYE employment.

Your employers would apply your tax code to your earnings with them and then you would pay tax on your self-employed profits direct to HMRC.

Check that your employer allows you to do outside work. Given your term-time only work, I imagine there would not be a problem but do check.

Also check that if you did the work derived from your previous employer that you would indeed by self-employed.

You will need to register with HMRC as self-employed.