Becoming self employed AND full time employed

[beautify2]

Hi All

I have seen a lot of threads on here about starting up as self employed, but couldnt seen any about being in full time employment AND starting up as self employed - has anyone done this? How does it work, do you get taxed hugely on both earnings?

Thanks!

 

[L_Bailey]

I'm full time employed and self employed! I get taxed the same on my normal job as I did before I was self employed! Then I think it's like 20% for my self employed earnings! I always put about 25% away from each treatment as this will then cover me for when I do the self assessment at the end the year!
Also I earn under £5000 a year so get a NI exemption too which is handy!
I haven't had a proper tax bill as yet because I have only been self employed for a little while but when you fill out the self assessment you have to put down your earnings from employment as well and then they calculate how much tax you owe it's actually quite easy! X

 

[beautify2]

Thank you! Good to know! Do you think that could change when you do your self assment form or have they said it will still be the same? xx

 

[Steph86]

Yes I too am employed & self employed, ive been able to cut my hours in employment as time goes on.

The above is correct, 20% unless you reach the next higher earnings tax bracket.

Also, you do n't pay tax until you make a profit, so if your business costs you £5,000 you won't pay tax until you have earned that back.

You will need your p60 at the end of tax year to input your employed earnings in to the self assessment form.

Xx

 

[beautify2]

Thank you for your replies x

 

[BeautyNerds]

Im on full time employment and setting up being mobile.
Im so confused by it all, I really don't understand.
I will be gradually dropping a day at a time in my full time job so that my business will take over.
Im actually classed as bank staff so my hours could be 40 one week then 16 the next.
Iv looked at inland revenue and you have 6 months from the first date you have advertised to declare you are a business.
Does anybody know anything about being vat registered too?

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[perfect10kb]

I'm full time employed and self employed! I get taxed the same on my normal job as I did before I was self employed! Then I think it's like 20% for my self employed earnings! I always put about 25% away from each treatment as this will then cover me for when I do the self assessment at the end the year!
Also I earn under £5000 a year so get a NI exemption too which is handy!
I haven't had a proper tax bill as yet because I have only been self employed for a little while but when you fill out the self assessment you have to put down your earnings from employment as well and then they calculate how much tax you owe it's actually quite easy! X

Ok from someone who learned the hard way do NOT take exemption from paying NI just because you can . This WILL effect your pension . I assumed stupidly that being exempt meant that my NI contribution would be met by the government

I found out just in time that had I continued to go with the exemption then I would not have enough qualifying years to be able to get a full pension

Look into this more as you can pay a voluntary NI contribution for low earnings which is only about £10 or so per month

Don' t get caught like I did . Luckily I found out in time and was able to claw it back

As for being self employed and paye employed just inform the tax office . They will then send you a tax return form to fill in each year where you will fill in sections for PAYE and self employment . Make sure you keep ALL receipts for Nything to do with your SE no matter how small . Keep a record of all your income and outgoings . It's fairly straightforward really

For VAT you do not need to concern yourself with this unless you expect high earnings from your SE . It is currently round about the 70k mark. Then you will have no choice but to be vat registered

X

X

 

[beccanailstan]

Hiya, this is a subject I'm thinking about a lot at the moment, I'm currently employed but being made redundant in December so in July I started doing beauty from home. (I qualified in level 3 beauty therapy in 2006) now I'm wondering whether to become self employed now or to wait until December when I've left my current job? I've kept a record of everything but I've spent about £2000 (so far) on set up but do I wait until I've made it all back before I go self employed? If I have ordered bits online etc do I keep all invoices and receipts from July for when I do self assessment? Or will they only do it from the date u go self employed? Will I get into trouble for not being registered self employed now? Help! Advice needed..

 

[BeautyNerds]

Hiya, this is a subject I'm thinking about a lot at the moment, I'm currently employed but being made redundant in December so in July I started doing beauty from home. (I qualified in level 3 beauty therapy in 2006) now I'm wondering whether to become self employed now or to wait until December when I've left my current job? I've kept a record of everything but I've spent about £2000 (so far) on set up but do I wait until I've made it all back before I go self employed? If I have ordered bits online etc do I keep all invoices and receipts from July for when I do self assessment? Or will they only do it from the date u go self employed? Will I get into trouble for not being registered self employed now? Help! Advice needed..

These are my questions too so any replies will be helpfull
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[LBR]

I would have thought you should have declared yourself self employed the minute you bought stuff and started to keep a record of your earnings. Remember you should declare any earnings straight away, not just "pocketing" the money.

I would find an accountant and you can ask them all the questions you have, that's what I've always done and kept myself right.

 

[Cholo]

Hiya, this is a subject I'm thinking about a lot at the moment, I'm currently employed but being made redundant in December so in July I started doing beauty from home. (I qualified in level 3 beauty therapy in 2006) now I'm wondering whether to become self employed now or to wait until December when I've left my current job? I've kept a record of everything but I've spent about £2000 (so far) on set up but do I wait until I've made it all back before I go self employed? If I have ordered bits online etc do I keep all invoices and receipts from July for when I do self assessment? Or will they only do it from the date u go self employed? Will I get into trouble for not being registered self employed now? Help! Advice needed..

You can claim back your start up costs (excluding initial training) from before you are trading so yes, keep your receipts.
As soon as you start advertising your business then you are deemed to be self employed & you need to inform HMRC

HTH x

 

[BeautyNerds]

They do prefer you to announce it straight away. This is more for you so you don't forget but you have 6 months from your first advertisement. You're classed as running a business from your first advertisement even if your not taking any money then. All this is on there website

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