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Sole trader and employed at another job

gavynn
Posts: 21 Forumite

Hi all. Sorry if a newbie question.
I am working full time in a job but thinking of also registering as a sole trader to try a business 'on the side'.
My question is, does having a Job affect being a sole trader or vise versa, eg taxwise, or different tax code etc, is my income regarded as both jobs combined - how does it work, or are they completely independent of eachother?
Thanks
My question is, does having a Job affect being a sole trader or vise versa, eg taxwise, or different tax code etc, is my income regarded as both jobs combined - how does it work, or are they completely independent of eachother?
Thanks
gavynn
0
Comments
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Normally your allowances are given in your code, so continue to be given against your employment income. That may mean, depending on the figures, that you pay 20% (or more) tax on any self employment income, plus national insurance. Have a look at this:
https://www.litrg.org.uk/tax-guides/self-employment
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One obvious question is "what does your employer say about other employment?"
Signature removed for peace of mind1 -
You can work for an employer & yourself without any problems. All you need are accounts for your sole trading which you can do yourself or have an accountant to do them for you ( I use accountant only around £300 a year & they can save you loads) Plus inform HMRC what you are doing. Tax codes etc all stat the same. I worked for years on a part time job & sole trader untill I built up my buisness to a level where I couldn't do both. Speak to a local accountant they sometimes offer a free startup advice. As for Tax you will need to add your job & sole trade wages together to see how much tax you pay.
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In fact being an employee and sole trader is great. You can claim losses as you setup your sole tradership against tax paid on your employment income. There are some rules/restrictions around it (e.g. can't be a hobby but has to be a real business)0
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