Self employed and working

[emmat123]

Hi,

I would really value some advice here. I spoke to Business Link about what I need to do if I want to have my own craft business and they said I need to register as self employed. This is all well and good but I already work full time and just want to do this part time. So can I be working for someone else and self employed!?

So confused, please help!

Thanks,

Emma.

[Soapie]

In short yes. You will obviously have to keep financial accounts relating to your self employment and at the end of the tax year the IR will send you a self assessment form to complete. Depending on your employed income and the success rate of your part-time self employment you will need to pay for tax difference due in January of the following year with a pre-payment in the July for the following year.

There are obviously a lot more pro and con details buts that is the gist of it - hope this helpful to you.

[jencel]

Yes, you can. The Inland Revenue will want to know if you're selling your crafts, and will want details of sales and expenses. If you make a profit, you'll have some tax to pay on it, but if you make a loss, you can offset it against your PAYE.

You should start keeping receipts and records of sales, and will need to submit your yearly figures. It sounds scary, but the HMRC is often very helpful to get you started, and may run some courses. There's also a lot of threads on this forum about the tax side of things.

It's not as scary as it sounds.

[Bath-Bomb.Com]

Don't Panic...

Yes, you can work full-time and be self-employed on a part-time basis..

You register your sole-trader/self-employed status with the Inland Revenue and you will have to fill in a Self Assessment Tax Return at the end of your first trading year (so for April 2009 to April 2010 you fill in the form before September 2010 or online in Januray 2011)...

If it's more of a hobby type thing that you make a bit of money on then it's less complicated and the nice thing is that, if you make a loss, it will be offset on the Tax you paid through your job - my first year of doing both I got nearly £2,000 in tax back...

Go through it all step by step and you'll soon get the hang of it and realise it's really not that big of a nightmare...

Good Luck

Jude x

[jencel]

and, if your turnover is less than £30,000 (I think that's the right figure) you only need to supply a three figure return to the taxman, rather than complicated profit and loss sheets, balance sheets, etc.

[emmat123]

Thanks a lot for all the help everyone. Seems a lot less daunting now!

Emma.