starting my own buisness

chazkemp69

hi i have a job which pays less that 10000 per year i have a job on the side cash in hand i want to make this as my own business while keep my job can i be employed and have my own business?
i don't pay TAX as dont make enough on my job but with my other job becoming a business will that effect this?

what about VAT ?
do i need to pay this ?
can i claim back VAT on the stuff i buy for my own business ?

PlutoinCapricorn

Chaz, many people who have PAYE jobs do additional work on a self-employed basis. They usually operate as sole traders, unless there is a good reason for starting a limited company.

What does your contract of employment say about doing other work?

PlutoinCapricorn

People must register for VAT once they start earning over £82,000 approx. Many self-employed people earn nowhere near that.

agrinnall

chazkemp69 wrote: »

i don't pay TAX as dont make enough on my job but with my other job becoming a business will that effect this?

Probably, if it takes your total earnings over your personal allowance (probably £10,600) then you will need to start paying tax on anything over that amount.

chazkemp69 wrote: »

can i claim back VAT on the stuff i buy for my own business ?

Although it sounds like you won't be required to register for VAT you can do so voluntarily if it will be beneficial to you.

MDMD

agrinnall wrote: »

Although it sounds like you won't be required to register for VAT you can do so voluntarily if it will be beneficial to you.

Bear in mind if you do register for VAT you will have to charge VAT to your customers which will push up the price by 20% if you don't sell to VAT registered businesses.

zygurat789

PlutoinCapricorn wrote: »

People must register for VAT once they start earning over £82,000 approx. Many self-employed people earn nowhere near that.

The £82,000 is for sales or turnover, earnings are what you are taxed on and are stated after all allowable expenses.