Employed and Self Employed

LiquidGold

Hopefully a quick question. I am employed in a full time role and would like to set up as a sole trader as well. Who then becomes responsible for calculating how much tax and national insurance I need to pay. Do my employers still deduct from my salary and I just work it out for the extra income I earn or do I become responsible for working out both? Thanks

General_Grant

LiquidGold said:

Hopefully a quick question. I am employed in a full time role and would like to set up as a sole trader as well. Who then becomes responsible for calculating how much tax and national insurance I need to pay. Do my employers still deduct from my salary and I just work it out for the extra income I earn or do I become responsible for working out both? Thanks

Your employer is responsible for how they pay you (and deduct tax and NI and forward it to HMRC).  For tax purposes they do not need to know about your self-employment earnings.

You are responsible for informing HMRC of your self-employment earnings.  And you will have to include your PAYE earnings in your report to HMRC.

serdaka

You just keep a record or all you spendings and earning from secon job and get accountant to do it for you. You can do youself too but it might be diffucult at first. If you are importing goods from abroad then getting VAT would be beneficial

donemedosh

I did the same thing a few years ago. Your employer will pay the normal tax & NI as normal. You just have to keep a record of your income & expendeture. You will be resposable for paying tax on your self employed profits. I got an accountant to do my tax returns & they saved me a lot of money & time. A good time to start is in the new finacial year (April 6 2021) & don't forget about public liability insurance etc again an accountant will let you know what to do, good look