Tax Etc

ex4ll

Hi, me and two other colleagues work in full time employment and are looking to start a new business whilst carrying on full time employment. how do we go about sorting our tax each year - do we have to fill in the self assessment tax forms? does our tax code change? will i get taxed more from my full time employment post?
Thanks!

creativemieu

You will need to complete a self assessment form. I think your tax code will remain the same but you will have to pay the extra tax from other earnings which will be assessed on the basis of your self assessment form. It might be worth employing an accountant to sort this out for you to be sure you get it right. But remember you won't pay any extra tax unless you actually get an extra income from your business and you will probably have some things that you can set against the tax. Good luck with the business.

zygurat789

All four of you will have to register and this will trigger four tax returns, one for each of you and one for the partnership.
The partnership will have to prepare accounts annually and the profit or loss is divided between the partners as agreed. This will be notified to HMRC on the partnership tax return.
Your indivdual tax returns will include all your income and any partnership profit will give rise to a lump sum payment, or if you prefer, you may have this collected through your tax code. I wouldn't do this it will only make your employer nosey and you don't want him thinking your not giving your all to his business.
If the partnership makes a tax loss and you tick the right boxes on your return then you will receive a tax refund.
Your tax code is only ever a method of collecting tax before you get your hands on it, look on it as payments on account of whatever your final liability may be.