What happens to tax if in full time employment and Registering as sole trader

lazer

asoe209 wrote: »

So will it be best for me to just wait until the new tax year now before registering as self employed.

Is is there part time self employed? im assuming there is not.

How comes Ill pay class 2 and 4? i thought it was one of the other.

From a tax perspective - it may be best of you register now especially if you have high start up costs which you have occured between 6/04/12 and 05/04/13,
If you have a loss this year - it is very benefical to report losses.

And you not have to pay either class 2 or class 4 of you are also paying NI through PAYE - the payments can be deferred (I think)

asoe209

Oh so my normal 9-5 is not counted towards SE taxes, so they stay separate from each other.

asoe209

So far I have spent 936.41
and made 900.47

that's since January 2013 when i pretty much started.

CLAPTON

asoe209 wrote: »

So far I have spent 936.41
and made 900.47

that's since January 2013 when i pretty much started.

if you have started already then you need to register now.

asoe209

yeah I do need to get it done its just this part of things were putting me off needed to make sure I was clear on it.

asoe209

A question about registering would I state my start up date as 1st of jan when I official start working on this business. Or is it the date that I decide to register I go by.

zygurat789

asoe209 wrote: »

A question about registering would I state my start up date as 1st of jan when I official start working on this business. Or is it the date that I decide to register I go by.

Isn't there a fine if you don't register within 3 months of starting.

Just register you're not committing yourself to any thing by doing so and you are disadvantaging yourself by not doing so. You can then learn to understand everything at leisure.

asoe209

Yeah think its 3 months. scary times makes every thing official now lol

amiehall

Make sure you file your small earnings exemption for NI basically as soon as you register as well. Otherwise you're going to get an angry bill for NI. The exemption is not applied automatically, you have to apply for it.

jackomdj

When you say you have spent £936 and made£900 do you mean you have made a net loss of £36 or income £1836, expenses £936, net profit £900?

For tax it is income less allowable expenses that you get taxed on.

Also for a person self employed and employed the tax office often adjust your tax code to collect the tax (assuming you are making a taxable profit)