Sole trader query

david_cox1990

Hi all,

I am currently full time employed, but have been selling on the side as a bit of a side hustle. I have since reached the £1000 threshold, so now looking to register as a sole trader to ensure I'm doing things correctly.

When looking on the GOV.UK website, I cannot see the option to register as a sole trader, only to register for self assessment - is this the same thing? Sorry brand new world to me!

I understand self assessments need to be completed annually, however I thought I'd have to register as a trader first?

Trying to do all of this by the book, to also ensure it doesn't impact my full time employment managed by PAYE.

Any advice would be greatly appreciated,

Thank you

MyRealNameToo

Self employed / sole trader are interchangeable terms and which is in favour changes over time but yes, your registration is effectively your registration for self assessment as per https://www.gov.uk/become-sole-trader/register-sole-trader 

david_cox1990

MyRealNameToo said:

Self employed / sole trader are interchangeable terms and which is in favour changes over time but yes, your registration is effectively your registration for self assessment as per https://www.gov.uk/become-sole-trader/register-sole-trader 

Thank you, so although full time employed, I still register as though I'm self-employed - is that correct? Just don't want it to interfere or cause issues with my full time role, as stated in my OP.

MyRealNameToo

david_cox1990 said:

MyRealNameToo said:

Self employed / sole trader are interchangeable terms and which is in favour changes over time but yes, your registration is effectively your registration for self assessment as per https://www.gov.uk/become-sole-trader/register-sole-trader 

Thank you, so although full time employed, I still register as though I'm self-employed - is that correct? Just don't want it to interfere or cause issues with my full time role, as stated in my OP.

When you do your self assessment you have to complete whichever sections are relevant for your situation. From what you say there that will be the general that everyone completes, the self employed and the employee section. Useful therefore to have your P60 to hand to do the employee section accurately. 

HMRC doesnt tell anyone anything about what's on the self assessment, they'll calculate the taxes due on your combined incomes, deduct the taxes already paid via PAYE etc and give you a bill. Tax codes may change and your employer will be told of a code change but not of why and no code explicitly identified a second jobber.

If you are allowed to have seperate self employment or not alongside you employee life will come down to your contract with them. HMRC won't tell them or give them information that would point to you having one but it's worth checking your contract and then making a decision on what to do so if you are breaching your contract by having a second job and not telling them you at least do so consciously 

singhini

Is this side hustle going to be a permanent thing? 
If not, you mkght want to then register for self-assessment and at the end of the tax year complete the relevant sections (income from employment which should be your P60 figures aswell as disclosing earnings above trading allowance).

If yes, the side hustle is going to be a regular thing and you suspect you will make profit over £1,000 every year then think about registering with HMRC as self-employed Working for yourself - GOV.UK and then complete the relevant section on the self assessment form i.e. earnings from employment P60 and earnings from self-employment. 

As pointed out already, it's worth checking your existing contract of employment and checking if you need to tell your employer if you have a second job. 

martindow

You are given the option to deal with the self employment tax via PAYE or not.  If the latter, your employer won't see a change of tax code, but as said it is wise to check your contract of employment as you don't want to jeopardise your full time employment.

timdiecast

You've not said what you are selling- if it's only your old possessions you don't need to inform HMRC. (Unless in the unlikely event of a Capital Gains liability)