Employed and starting off as self-employed

muhandis

Hi,

I currently have a full time job. For the past few months I have been also working as an admission agent for a college in London. Each time I get a student to join, I get paid a certain amount in cash by the administrator.

The initial few months weren't very fruitful and I got about 2-3 students, but things have been picking up recently and I want to make sure that everything I do is above board tax-wise. I talked to an accountant and he gave me advise which didn't seem right (he couldn't understand why I wanted to pay tax when I was being paid in cash). I have a few questions, would be great if someone could help me -

1. He said that all I need to do is
- register for self-assessment with HMRC.
- keep track of the money I am paid with amounts and dates.
- keep receipts of any expenses directly related to this work (just travelcards and phone bills)
- come to him at the end of the year and he would prepare my accounts.

Does that sound about right?

2. Is there a link on the HMRC website where I need to register myself as a 'Sole Trader' ?

3. I don't have a separate business address. Can a business address be same as my home address?

4. I don't give any invoice to the college when they give me my fee. Do I need to?

5. The college insists on paying in cash, could that be a problem for HMRC?

Thanks,

Sam

steve1980

Do you work ONLY for the college or do you have other employment as well? If the college is your only employment then you should be EMPLOYED not SELF EMPLOYED.

There are threads galore on here about how, what, when & why to register as a sole trader.

The quick answers to your questions:

1. The accountant obviously wasn't one as he is advising you to commit tax fraud.

2: Yes. http://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=ytV91aFVn3U&formId=490

3. That's fine. Use your home address.

4. Yes. You need to raise an invoice to get paid.

5. For them yes, for you yes.

InsideInsurance

You dont have to go to an accountant at year end. For a sole trader you just need to complete a self assessment form and for a simple business I would be highly surprised if you arent able to do it yourself, after all the reason for the name of the form is that it is supposed to be able to be done yourself.

Being paid in cash is not necessarily a problem though another form would be preferable