MegaSack DRAW - This year's winner is user - rgwb
We will be in touch
Guys,
Thinking of reducing my regular job from 5 days to 4 and having a small weekend business.
The business will not be related to my current job.
It won't take in tons of cash.
So am I better to set up as a sole trader or Limited Company?
What's the easiest to administer for tax etc?
I've done this as sole trader. It's dead easy. Self assessment once a year and no accountant required.
Thanks, how does it affect PAYE on my current job?
Or does the self assessment just take the tax I'd pay on the extra earnings?
On your self-assessment you'll declare the earnings from your job and your new business and say that you have aleady paid £x tax through PAYE and then work out how much exta you need to pay.
.
Note: if the side business makes profits of less than £1k/year this is a 'hobby' and no tax will be due.
Thanks guys - greatly appreciated 👍
Yes I have just done my own self assessment for last year. Just write down revenues and costs as you go along, come year end just add them up. I have never had a problem but some businesses attract the attention of HMRC.
HMRC have had a bit of a focus on "adult work" in the last 2-3 years, so if that's your weekend sideline just keep your paperwork in proper order.
(I know people on each side of the issue - the HMRC side said it had been "educational", the other friend used slightly more colourful language!) 😄😂
the HMRC side said it had been “educational”, the other friend used slightly more colourful language!
I think I've seen this one
I find the HMRC explanatory notes really useful. For my venture, property, I think any profits under c 20k, you are allowed to just post 3 numbers, turnover, cost and taxable profit.
Actually first year I got an accountant to do it, then I copied the format.
Haha it's definitely not going to be 'adult' lol
Haha it’s definitely not going to be ‘adult’ lol
Well that's a waste of a good username 😀