Self employed / sole trader

[NiceCupOfTea]

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?

[LivinLaVidaLotus]

Depending on how much he is earning as a sole trader, he may be eligible for small earning exemption from self employed NICs.

[K50 DEL]

What's the threshold for this exemption do you know?

[honestbob]

I'm a sole trader and pay about £10 a month N.I.by standing order. The remainder is paid with my annual tax bill.

[Eric Mc]

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.