PAYE & Sole Trader?

[sday12]

I working PAYE for my current Employer, but want to do some (legit) business on the side.

Can I register as a sole trader? How does it effect may PAYE tax code?



Thoughts/solutions appreciated

[bobbylondonuk]

not sure about it..but my understanding is that you register as a sole trader and declare your PAYE earnings along with your business earnings when you do the self assesment. The PAYE deductions will be part of the total TAX/NI due to HMRC from total earnings.

[Meeja]

Eric Mc will be along in a mo, I'm sure!

As far as I know, yes you can.

you would need to treat your "extra" work as self-employed, and as such keep accurate books for this income/expenditure.

You would then need to complete a self-assesment form for HMRC at the end of each year, and declare both your PAYE earnings, and your other income/expenditure, and obviously pay any extra tax that would be due because of this.

Sounds very simplistic, but in essence, that is all you do.

[Eric Mc]

Meeja said:

Eric Mc will be along in a mo, I'm sure!

As far as I know, yes you can.

you would need to treat your "extra" work as self-employed, and as such keep accurate books for this income/expenditure.

You would then need to complete a self-assesment form for HMRC at the end of each year, and declare both your PAYE earnings, and your other income/expenditure, and obviously pay any extra tax that would be due because of this.

Sounds very simplistic, but in essence, that is all you do.

In a nutshell - that's it. The tricky part is ensuring you make the correct expense anfd allowance claims for offset against your self-employed income.

[Brown and Boris]

And tell the tax man you are doing it ASAP.

[Eric Mc]

Brown and Boris said:

And tell the tax man you are doing it ASAP.

He must be notified within 3 months of the commencement of the sole-tradership.