own business and employed in another

[slipstream 1985]

pottentially looking at starting up my own business. i will still be staying in my current job as this would only take up a few hours a week. what are the tax implications regarding my current jobs salary and the business? anyone done similar id appreciate your input.

[ewenm]

All sorted out in a self-assessment tax return. Speak to an accountant (who you'll need when you set up a business).

[DSLiverpool]

I did this for 4 years when starting up my own business, basically I didnt take any wages from the business (I didnt need any I used to be a captain of industry lol) then when it got to a certain size I had to leave my job and join it.

You can own a business and not take a wage and not have to report it (I think - ask a accountant) - I was paranoid my employer would find out through tax coding etc

[AndyAudi]

I know it ain't what you asked but might be worth checking your contract of employment to see if there are any conditions in it about outside work or interests. I've seen a few such things in the past.

[jon-]

DSLiverpool said:

I did this for 4 years when starting up my own business, basically I didnt take any wages from the business (I didnt need any I used to be a captain of industry lol) then when it got to a certain size I had to leave my job and join it.

You can own a business and not take a wage and not have to report it (I think - ask a accountant) - I was paranoid my employer would find out through tax coding etc

The key is whether you're going to be self employed or a director of a limited company.

If you're self employed you have to notify HMRC and then pay tax on top of ANY profit you make (along with class 4 NIC). This tax is (unfortunately) calculated as an addition to your PAYE, not a separate allowance.

If you are a director of a limited company then you have to pay corporation tax on profits. Your name would also show up on a companies house search.

Not sure how you got away without paying any tax... but I'd keep quiet about that!

[ukshooter]

I had a firearms training business in the 90's when I was employed by the Woolwich.

In starting a new business, it often makes losses in the early days and these losses can be offset against your PAYE income. I was able to get tax back from that paid on my Woolwich income.

The advice about checking your contract makes sense. normally it is only an issue if there is some conflict of interest. If it is a totally unrelated industry, shouldnt be an issue.

[fridaypassion]

Just register as sole trader for your 5-9 business with the Revenue. Request a short return form if your turnover is low it's far easier. Your tax is lumped in with your PAYE doing it this way. When I first set up and ran at break even I got some tax back which was nice of them.

[Eric Mc]

It's not compulsory for a self employed individual to use an accountant, but a good one will reduce your tax bill by more than his/her fee.