Registering as self employed whilst working full time

funkymonkey-87

Hi all, just looking for some advice. My Husband is a IT programmer & works full time he was asked by a friend of a friend to do some work which was to be a one time thing probably making around £200ish ( which he ended up not needing) but it got my husband thinking that perhaps he could start a small home business as well as his main job. Obviously we need to register as a business etc but does anyone know how it works with tax etc if he doesnt know what he is going to earn how do we get taxed? Im sorry that i'm new to this so if i need directing somewhere else please let me know

thanks

antrobus

funkymonkey-87 wrote: »

.... etc but does anyone know how it works with tax etc if he doesnt know what he is going to earn how do we get taxed?

Tax is calculated after the fact. Once you know how much you've earned in any tax year, you report the figures on your tax return, and then work out how much you owe. Or ask HMRC to do it for you.

funkymonkey-87 wrote: »

.. My Husband is a IT programmer & works full time he was asked by a friend of a friend to do some work which was to be a one time thing probably making around £200ish ( which he ended up not needing) but it got my husband thinking that perhaps he could start a small home business as well as his main job.

Obviously we need to register as a business...

If your husband decides to start a small home business then there would be a need to register with HMRC as self-employed, but there would be no need to do so just because you've earned £200 'on the side' as a"one time thing". You'd still need to tell HMRC about the £200 tho'.

SuzH1

If your husband decides on setting up a business, then he has 3 months in which to register as self employed. Failure may result in a fine.
My husband is in the same situation, he only makes about £200 profit each year and we still submit a self-assessment return. It does seem a lot of effort for the small return, but at least we know we're doing the right thing. And it's not a hassle should he earn a lot more that year, we complete the same process however much/little he makes.

lozza1985

I work full time and and registered self employed for my Avon. It hasn't affected my main wage in anyway, though there is the option of if you have to pay tax on your self employer earnings for them tO take that money from your wages, but I just select the option to pay it separate as I find that easier.

MoneySaver82

Hi

I just posted same kind of info on savvycash's recent thread but thought it might be useful to you to.

If you are doing any kind of extra work on the side it's really easy to set it being self employed online on the HMRC website and fill in the forms there.


I do surveys, etc for an extra bit of cash and just keep a spreadsheet of any money I get from the various survey companies, etc and of any expenses - eg an tiny allowance for electricity costs for runnning the computer plus printing costs for anything I print out stuff like that. I then end up paying 20% tax on whatever my profit is as I work part time and this takes me over the lower earnings limit (£8105 this year) for paying tax anyway and everything above that you pay tax on - usually 20%.

You also may need to pay Class 2 and Class 4 NI contributions depending on how much he ends up earning.
I don't earn enough in my self-employed work to pay Class 4 and I also got a small earnings exemption certificate for Class 2 contributions as I'm only make a couple of hundred pounds a year on the additional work so nowhere near the limit (£5595 for this year).

I found this page on the HMRC website pretty helpful - http://www.hmrc.gov.uk/working/intro...lfemployed.htm

Hope this helps!:)