Self Employed Help

[Dairyspark]

Hi everyone,

I'm currently in full time employment, I also have a second job with HM Coastguard and I'm thinking of registering as a sole trader for when I do work on the side (to keep it all above board)

My question is this

Since I'm in full time employment, do I need to pay more national insurance for my own business

My next question is how hard is it to fill in a tax return, I'm not planning on making large amounts of money so I don't really want to have to hire an accountant

 

[ProDave]

Self assessment accounts are simple. It boils down to keeping a record of money in and money out.

No need to be VAT registered unless you like a lot of extra paperwork.

If you are self employed AND employed, then it's likely they will collect any tax due from your self employment, by adjusting your tax code so you get more tax deducted from your PAYE income.

 

[Dairyspark]

At the moment I pay normal tax for my main job, and get taxed at higher rate for my 2nd job (coastguard) so would it be likely for them to take more tax from my main job instead of me separately paying tax? I think that's what your getting at.......I think.....its been a long day haha

 

[Essex1]

Speak to an accountant. Yes on the face of it self assessment tax returns are simple but £200 for an accountant and they will show you things you never knew about. Plus the chances of you getting investigated doing your own accounts is very high. Trust me. I know.

If you are going to work for a CIS registered company they will stop you 20% as well if you register for CIS. If you do not register they will stop you 30%.

Doing VAT is no different from doing self assessment. Counting VAT in and counting VAT out. You really need to decide if you are going to target non VAT registered clients then you clearly do not want to register for VAT because then you are 20% more expensive before you start. If you are targeting VAT registered company then you purchase materials and fuel less VAT so you can be more competitive.

 

[Lurch]

I went voluntarily VAT registered a few years ago as most of my customers were VAT registered so I was uncompetitive previously, I would not have got as lot of the work I did if I wasn't VAT registered. Horses for courses on that.

As for the paperwork, I find the VAT simple but the SA a PITA. I would also still recommend an accountant as they will usually pay for themselves in one way or another. I started using QuickFile the other year and have found it makes everything simple, and paperless.

 

[Doc Hudson]

Hi everyone,

I'm currently in full time employment, I also have a second job with HM Coastguard and I'm thinking of registering as a sole trader for when I do work on the side (to keep it all above board)

My question is this

Since I'm in full time employment, do I need to pay more national insurance for my own business

My next question is how hard is it to fill in a tax return, I'm not planning on making large amounts of money so I don't really want to have to hire an accountant

And finally,

Do I need to be Vat registered? I've read the .gov website about vat but I'm confused, I know I'm not gonna make more that £82,000 but it says you can volunteer to register for vat

Hope that all makes sense

Thanks in advance

Bobby

You say a second job with HM coastguard.  Would they be your only customer as self employed, or do you have other clients?  I think there is some rule about self employed traders should have multiple customers. Otherwise I think you fall into a different category if you only ever do work for one customer/employer. Or I may be wrong. Self assessment forms are much simpler now to what they used to be 20+ years ago.

Doc H.

 

[Essex1]

I do not think he means he will be working for the coastguard as a SE person. He will be PAYE for them and any work he gets on the side will go through his SE books.

 

[Dairyspark]

Haha no let me explain about the coastguard, I'm a paid search and rescue volunteer, so that counts as a 2nd job, my Self employedness would be me working for my self with multiple customers and most of the people I have worked for have just been home owners I've only worked for one business so far

 

[Tony S]

Just be very careful regarding the T&C’s of your main employment, they may not take kindly to you doing electrical work on the side.

Three line accounts are easy

In

Out

What’s left

You can claim either fixed or cumulative depreciation, once you choose one you can’t change your mind. Watch out for mileage claims.

Accountants are a waste of money. (I married one.)

 

[Dairyspark]

My place of work is so old fashioned I don't have a written contract so no terms and conditions exist on paper

 

[Evans Electric]

Forget the VAT ..I don't think you'lll need it .    I  volunteered for it same reason as Lurchio but  I've dropped it now .

Again ...keep simple accounting books ..... left page for incomings ...right page for outgoings .

 

[Murdoch]

And remember you will need to inform your vehicle insurance company that you are using it for business, then there is PL ins.

Regarding the tax situation - I would say call them and talk it through - they don't bite when you ask them for their help.

As for NI, you will need to pay class 4 on your profits... and remember to save for your tax and NI payments....

 

[Dairyspark]

I think a phone call to them would be a good idea, I knew about the vehicle insurance and I've already looked into insurances. It shall be a fun journey to see if it's worth doing or not

 

[Tony S]

As well as vehicle and PL insurance ask about PI.

Insurance is a bugbear but a necessary evil.