Self employed / sole trader
Discussion
Hi folks.
My brother has a full time job where he PAYEs. He's just started working for a friend doing occasional freelance work.
His friend has advised that he registers a being a sole trader which he has done, and now is getting lots of demands for NI etc.
As far as I am concerned he should just ring the revenue and explain the situation, and on his tax return fill in the employed / self employed sections. Maybe he would have to setup a DD for his NICs?
Advice?
In any case, what is the difference between filling in employed/SE forms on the tax return and registering as a sole trader?
My brother has a full time job where he PAYEs. He's just started working for a friend doing occasional freelance work.
His friend has advised that he registers a being a sole trader which he has done, and now is getting lots of demands for NI etc.
As far as I am concerned he should just ring the revenue and explain the situation, and on his tax return fill in the employed / self employed sections. Maybe he would have to setup a DD for his NICs?
Advice?
In any case, what is the difference between filling in employed/SE forms on the tax return and registering as a sole trader?
The current tax year Small Earnings Exception is £4,635. Therefore, if he knows his taxable profits from his Self Employed activity (activities) are not going to exceed this figure, he can apply to be exempted from having to pay the Self Employed Class 2 National Insurance contributions.
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