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  • FIRST POST
    • VintageBelle
    • By VintageBelle 2nd Apr 19, 11:48 AM
    • 292Posts
    • 209Thanks
    VintageBelle
    Working full time and starting a part time business
    • #1
    • 2nd Apr 19, 11:48 AM
    Working full time and starting a part time business 2nd Apr 19 at 11:48 AM
    Hello


    I am looking for advice as I'm very confused by all the info that I find online.


    I am in full time paid employment but want to start a part time online business.


    Can I register as a sole trader if I am also working full time?


    Also will my tax and NI be kept separate from that of my employment?


    Will I have to pay class 2 NI on my business?


    Any help you can provide will be much appreciated.


    Many thanks


    Anna
Page 1
    • Savvy_Sue
    • By Savvy_Sue 2nd Apr 19, 12:56 PM
    • 40,089 Posts
    • 37,452 Thanks
    Savvy_Sue
    • #2
    • 2nd Apr 19, 12:56 PM
    • #2
    • 2nd Apr 19, 12:56 PM
    Can I register as a sole trader if I am also working full time?
    Originally posted by VintageBelle
    Yes.

    Also will my tax and NI be kept separate from that of my employment?
    Originally posted by VintageBelle
    Yes. What's more, if you make a loss initially, I believe that can be offset against tax paid in your employment, at least in the short term.

    Will I have to pay class 2 NI on my business?
    Originally posted by VintageBelle
    Any liability for NI will be calculated when you do your tax return, on which both your employed and self-employed income will be listed.
    Still knitting!
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    Current projects: pink balaclava (for myself), seaman's hat, about to start another cardigan!
    • rickyroma
    • By rickyroma 11th Apr 19, 6:01 AM
    • 45 Posts
    • 2 Thanks
    rickyroma
    • #3
    • 11th Apr 19, 6:01 AM
    • #3
    • 11th Apr 19, 6:01 AM
    Hope it's ok to add a question to this thread rather than start another! It may be of interest to the original poster too.
    The 1000 tax allowance.....is this only for sole traders where it is their only source of income or could a sole trader who also has a full time job claim the allowance?
    • PasturesNew
    • By PasturesNew 11th Apr 19, 6:17 AM
    • 67,217 Posts
    • 394,076 Thanks
    PasturesNew
    • #4
    • 11th Apr 19, 6:17 AM
    • #4
    • 11th Apr 19, 6:17 AM
    Many people do it.

    Just register as self employed and set up/run your business and keep accounts.

    Each month you get a wage slip from work - at the end of the working year you'll get a P60 from work. Keep these.

    From your self employment you'll have expenditures and income - and you'll do your accounts.

    Once a year, log into the tax website and fill out a Self Assessment form. On there it asks "do you have a job" and you fill in your job details and the figures of how much you've earnt/been taxed. You get these figures from your wage slips/P60.

    Then you also add in that you are in self-employment and fill in the figures there. If you've not made much money (up to about 15k or so) you have an option to simply type in the one figure of profit (turnover - expenses).

    It's as easy as that.

    The system then looks at your total income and tax already paid on your job and shows you the figure of any tax or NI you need to pay for the self employment part. You can then click through and pay that amount online right then and there if you wish. If your figures are simple and straight forward, this will probably take you half an hour a year to do.
    • SimoneAmanda
    • By SimoneAmanda 11th Apr 19, 4:23 PM
    • 1 Posts
    • 0 Thanks
    SimoneAmanda
    • #5
    • 11th Apr 19, 4:23 PM
    • #5
    • 11th Apr 19, 4:23 PM
    Starting your side hustle now in April 2019 means you wont be submitting an online self assessment until the of end of jan 2021, (or end of Oct 2020 for a paper submission). Letters have just come out requesting self assessment for apr 2018-apr 2019 so you have plenty of time to suss it out and get your record keeping in place. The tax benefits of combining employment and self-employment is often the reason why ppl start part-time biz. To be comfortably covered, put aside 25% of your profit every month to ensure you have the means to pay your tax bill , although start-ups don't often make enough of a profit in the first few years, in which case, book a holiday with the money you saved lol. I wish you much success.
    Simone
    • Elise1912
    • By Elise1912 22nd Apr 19, 7:48 PM
    • 53 Posts
    • 86 Thanks
    Elise1912
    • #6
    • 22nd Apr 19, 7:48 PM
    • #6
    • 22nd Apr 19, 7:48 PM
    If you create a limited company, you could be the employee, director and secretary. Depends how much you'll pay yourself. If under the threshold, you'd pay no income tax or NI contributions I believe. You would need to do PAYE if its more. Yes your tax for the business would be separate to your FTE income/tax.
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