What do I need?

bytey

Hi All,

A big thank you to all out there - I have spent quite a bit of time reading through the forums and your great advice has proved invaluable. It has got my mind really ticking over about my finances.

Last week I decided it was time to take on a second job to give me a bit of an added boost and this weekend I got offered the position. However, it does mean that I have to be self-employed.

I am currently employed full time and know absolutely nothing about self-employment. I am frantically reading the inland revenue website and my head is spinning. Very confused about what I have to do...

What I do know is that I have to set up another bank account for the money that I make from being self-employed. I am not expecting to make a large amount - I estimate about £60 a week - £200-£240 a month working approx. 10 hours a week - more if I can manage it. I hope to be able to leave this money accumulating - only drawing on it every so often to make a payment towards my credit card or student loan.

Can anyone advise me on where the best place to open an account for this money is?

Anyone with any advice on self-employment is very welcome to reply too! I am super confused about Tax and NI.

Thanks,

Bytey

grumbler

bytey wrote:

...- £200-£240 a month ...Can anyone advise me on where the best place to open an account for this money is?

Hi and welcome.
I think the best place for £25-£250 a month is Halifax (or HSBC if you have current account with them) regular saving account.

Regularly Beat the Best Savings Accounts

After a year move money to cash ISA: ISAs - save tax

P.S. Current account: you can open another current account with your bank. If you don't like your bank and want account with good online banking - I vote for Nationwide.

PeeWee

Set youself up as a LTD company, great to avoid tax and NI!

Put yopurself on a £4500 a year salray, this means you wont pay NI but will still have it contributed at 0 Rate.

Take the rest out as directors dividends! doesnt save you a fortune in tax but saves you in NI.

Also, you might need to runa car for your new business, make sure YOU own the car not your business, you can then charge your milaegae at 40p a mile to your company, and this is taken out tax free.... do lots of miles and you take out lots of tax free cash

This relates to someone not in full time emplyment though, so you would need to seek advice, I personally got a good accountant, he has more than paid for himself!! and I would higly reccomend one!!!

You can also put "stuff " through the company, this then reduces your profits but also the tax you pay....

hop ethat makes sense, but my advice would be to get a good accountant

tinalives

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