Employed full time & going mobile - tax implications

[VickyD78]

Hi

Just wondered if anyone could give me some advice. I've looked through the threads but haven't yet found my answer.

I am currently working full time and continue to do so for a while. I am looking at going mobile in the evening and weekends. I obviously pay tax on my full time wage and was wondering how the tax would work with me earning extra money by going mobile. Would I need to pay tax straight away with my mobile beauty even if I am in a loss?

Hope this makes sense, and I would appreciate any advice

Many thanks x

 

[oey]

If you are spending more than you are earning from your part time self employment whilst working full time then you shouldnt have to pay any additional tax. However, do speak to somebody at the inland revenue and they can explain it a little better for you around your financial circumstances.

 

[Minipig007]

Oh i know about this as i'm exactly the same (apart from working from home).

Ok, you need to pay class 2 NI contributions in addition to the class 1 payments you already make. It is then on the basis of your income as to whether you need to pay any additional class 4 NI payments.
For tax, all done on your end of year tax return. So, to start with, just your Class 2 ni contributions - normally about £5 a month, the rest is calculated from there.

Check out the HMRC website as it has a working for yourself guide on there. or here's the link:
http://www.hmrc.gov.uk/startingup/working-yourself.pdf

hth's

 

[joe90]

I was in this situation too until recently. If you are going to be earning a minimal amount or even run at a loss to start with your can get a Class 2 exemption certificate so you won't have to pay any more national insurance.

On the tax front, get yourself an accounant as they will be able to work out your tax liabilities and if you run at a loss he will be able to offset your tax liability on your earned income against your losses and you may therefore be entitled to a rebate at the end of the tax year (maybe not till next year though).

 

[VickyD78]

Thanks for all you advice - it's been a great help