Helping son with tax

Jojomissy

My son was in 6th Form college but unfortunately had a breakdown in January this year. 
He worked in a local pub alongside his studies and increased his hours after his breakdown and decided not to continue his studies and pursue university. He was furloughed through covid but has been working full time hours since the pub reopened on minimum wage.
He has recently been given the opportunity to freelance on various design work and seems to have found what he enjoys. 

He has been offered 30 hours weekly by a local business who have asked him to invoice for his work. Also he is doing other projects which he will invoice similarly. He will carry on working at the pub for a shift or two weekly as it allows him the social aspect.

He obviously receives payslips and pays NI for the pub but under the tax threshold currently. He is now at the at the point where he will from next week be doing various projects so we need to understand procedures for tax etc.

Is there somewhere we can start to learn about him setting up and how to register his new employment for tax etc. Also he is using his car to travel to meetings etc so his mileage is increasing and insurance needs to change. I am happy to help him. He is quite an organised person but is also 18 😁

Many thanks 

xylophone

https://www.gov.uk/working-for-yourself

Jeremy535897

Start here:
https://www.gov.uk/log-in-file-self-assessment-tax-return/register-if-youre-self-employed

Some good advice here:
https://www.litrg.org.uk/tax-guides/self-employment/how-do-i-pay-tax-self-employed-income

Grumpy_chap

I think the OP's son will need business cover for his car insurance.  Mileage can then be charged against his self-employment.

Jojomissy

Grumpy_chap said:

I think the OP's son will need business cover for his car insurance.  Mileage can then be charged against his self-employment.

He has an electric car. Do you know whether he claims mileage the same as a normal car as it currently just gets charged on my domestic supply?

Many thanks

molerat

The mileage rate is the same 45p/25p whatever fuel is used.

macman

HMRC may query if 30 hours per week, each week, for one customer is actually self employment? Is it on-site, do they determine his hours of attendance?

Grumpy_chap

Jojomissy said:

Grumpy_chap said:

I think the OP's son will need business cover for his car insurance.  Mileage can then be charged against his self-employment.

He has an electric car. Do you know whether he claims mileage the same as a normal car as it currently just gets charged on my domestic supply?

Many thanks

I understand the same 25p / 45p mileage rates apply.

Will your son be self-employed sole-trader, or will he set up a Ltd Co.?  If the latter, then the car could be a company car and your son will not be subject to any BIK (rises to 1% next year).

Has your son engaged the services of an Accountant to advise him?  It could be worth while.