starting a buisness while full time employed

peterwrighty

Hello guys.

I am in a bit of a sticky situation and was wondering if anyone could help.

I am full time employed and pay higher tax at 40%.

I have been importing and selling online for the last three months and have made probably 2k proffit.
I recently wanted to import some new products and was asked for an eori number.
So to get this I would have to be regesterd as self employed / sole trader.
This also woke me up to the fact that I should be paying tax.

Its so unmotivating to know that 40% of my proffit will be taken for tax when I already pay so much in my job but thats the way it is.

I was just considering jacking it all in and not bothering with the selling buisness on the side.

But If I wanted to keep doing it I would have to go as a sole trader and fill in a tax return, but im woried they will look back at my bank history and start digging around.
I have sold the odd thing here and there and a small bit of freelance in the last few years. In all maybey £2000 over two years , not alot. But im woried if I go down this rout it will open up a can of worms.

Any advice guys/ Will they look through my bank accounts ? and will i get in trouble for not declaring I have been trading for three months?

Any advice would be great .

P

pooch

peterwrighty wrote: »

Hello guys.

I am in a bit of a sticky situation and was wondering if anyone could help.

I am full time employed and pay higher tax at 40%.

I have been importing and selling online for the last three months and have made probably 2k proffit.
I recently wanted to import some new products and was asked for an eori number.
So to get this I would have to be regesterd as self employed / sole trader.
This also woke me up to the fact that I should be paying tax.

Its so unmotivating to know that 40% of my proffit will be taken for tax when I already pay so much in my job but thats the way it is.

I was just considering jacking it all in and not bothering with the selling buisness on the side.

But If I wanted to keep doing it I would have to go as a sole trader and fill in a tax return, but im woried they will look back at my bank history and start digging around.
I have sold the odd thing here and there and a small bit of freelance in the last few years. In all maybey £2000 over two years , not alot. But im woried if I go down this rout it will open up a can of worms.

Any advice guys/ Will they look through my bank accounts ? and will i get in trouble for not declaring I have been trading for three months?

Any advice would be great .

P

https://www.gov.uk/register-for-self-assessment/overview

paddyrg

peterwrighty wrote: »

Its so unmotivating to know that 40% of my proffit will be taken for tax when I already pay so much in my job but thats the way it is.

Luckily the playing field is level - you're playing with the same rules as everyone else!

peterwrighty

paddyrg? what

Mistral001

peterwrighty wrote: »

paddyrg? what

I understood what he meant. We all live by the same tax rules. Income tax is applied to all income earned. The Op seems to imply that his business outside his employment should not follow these rules.

PasturesNew

peterwrighty wrote: »

I have been importing and selling online for the last three months and have made probably 2k proffit.

I presume they've all been declared appropriately and relevant duty/tax paid too?

peterwrighty

Correct :beer:

peterwrighty

All sorted , got an accountant today. And yes all duty and tax paid to:)

Maddybee33

If you're earning more money you pay more tax- it's the way it works.
Congratulations on hiring the accountant :-)
Best of luck!

peterwrighty

Yep , I should have really been asking about going as a sole trader or ltd . Sole trader for now it is. Can change to ltd at a later date . I just had lots of people saying dividen with ltd was a way to pay a lower tax than sole trader.

paddyrg

Hiya, it's not as cut and died as out first appears because as a higher rate tax payer, you'll be taxed on dividends https://www.gov.uk/tax-on-dividends/how-dividends-are-taxed -which sounds great until you realise dividends are dispersed after corporation tax. Yes you save a bit on NI contributions, but you're basically in more or less the same position. Add in the fact that you'll pay a grand or so a year to an accountant for your limited company, and it all looks less appealing!