Employed AND self-employed - how do I do it?

squ1rrel5

Sorry if this answer is somewhere else but everything I read about being self-employed is for people who ONLY work for themselves.

I am currently employed (on maternity leave) and when I return in January I will be working P/T.
I have no intentions of leaving this job but I'd also like to set up my own small business (selling handmade gifts) in my spare time.

I'm not expecting to make my millions from this (well, you never know) but I will be making a small profit from the materials that I buy.

I'm certain that it won't be enough to affect my income but I'd like to everything to be above board and register as self-employed.

My questions are:
1) Can I be registered as self-employed if I am also employed
2) If yes, how will this affect my tax from my employer
3) Do I just fill in a normal self-assessment registration online or is it best to speak to an actual person in HRMC
4) When I have to declare my income from my small biz - do I also need to declare my earnings from my 1st job - or is this all done separately?

Sorry if there's lots of q's here - I'm new to all this and just want to get it right!!

TIA

sinizterguy

You can register as self employed while employed.

You will have to pay Class 4 NIC.

It won't affect your tax code, but it will have an effect at year end when it's all tied up.

Better to get an accountant/book keeper to do it, although if it is simple, you can do it yourself.

squ1rrel5

I should be fine with the accounts - there won't be that many to manage!

Once I'm set up I think I'll be okay, it's just the registration that I find a bit bamboozling.

So will I end up paying more in NI contributions?

Skint_yet_Again

squ1rrel5 wrote: »

Sorry if this answer is somewhere else but everything I read about being self-employed is for people who ONLY work for themselves.

I am currently employed (on maternity leave) and when I return in January I will be working P/T.
I have no intentions of leaving this job but I'd also like to set up my own small business (selling handmade gifts) in my spare time.

I'm not expecting to make my millions from this (well, you never know) but I will be making a small profit from the materials that I buy.

I'm certain that it won't be enough to affect my income but I'd like to everything to be above board and register as self-employed.

My questions are:
1) Can I be registered as self-employed if I am also employed
2) If yes, how will this affect my tax from my employer
3) Do I just fill in a normal self-assessment registration online or is it best to speak to an actual person in HRMC
4) When I have to declare my income from my small biz - do I also need to declare my earnings from my 1st job - or is this all done separately?

Sorry if there's lots of q's here - I'm new to all this and just want to get it right!!

TIA

You can be employed and self employed. You can register self employment online https://online.hmrc.gov.uk/registration/newbusiness/introduction

When you complete your tax return you will show all your income from all sources - employment, self employment, etc

You will only pay tax if your total income (gross employment before tax, any taxable company benefits? plus net profits after expenses etc) is more than your tax free allowance (basic personal allowance this year £10000)

You may have to pay class 2 and class 4 nic on your self employment profits, These links give you more information and the amounts

http://www.hmrc.gov.uk/working/intro/employed-selfemployed.htm#2

http://www.hmrc.gov.uk/working/intro/class2.htm

http://www.hmrc.gov.uk/working/intro/class4.htm

hope that helps

squ1rrel5

Thank you so much - that first link has explained it really well!