Help - Second Job/Starting a business

TattiBoJangle

Hi guys,

I could really do with some advice. Im currently in full time work as an estimator, whilst it's done me well for some years it's become deeply dissatisfying as office work just isn't for me and i'm really hoping to move away from this soon.

In the meantime I'd like to start a little business on the side, gardening and that sort of thing on the evenings and weekends. What are the legal implications of this in terms of declaring the business and tax etc. I really have no idea where to start..

Any help would be appreciated.

Thanks

Mike

dh247

Register as self employed with HMRC as long as you'll take less than £70k and it's just you, fill in a tax return at the end of the year... done!

PlutoinCapricorn

Mike, you need to take this one step at a time and learn in advance what is involved to avoid making mistakes and getting unpleasant surprises.
https://www.businesslink.gov.uk is a good place to start.

Your first decision is whether to be a sole trader or create a limited company. Most people start as sole traders then only incorporate if and when their business get big enough. You resister as a sole trader once you have some actual work, not in advance on the off-chance. If you wait to start working until after April 6th, you get more time to learn about what is involved. As your job uses up your personal allowance, you would pay 20% income tax on any earnings until you reach the high band. You would need to pay Class 2 National Insurance unless you claim exemption on the grounds of low earnings.

Assuming you decide to register as a sole trader, you need to decide whether to trade under your own name or use a "trading as" name. If the latter, you will need a separate bank account otherwise you may get away with using a personal account. There is also the question of the business address, and whether running a business from your home is permitted.

You may need public liability insurance, and to think about health and safety aspects.