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Sole trader with full time job. How to do it?


9 Feb 2008 6:49PM
I have a full time job but am considering additionally registering as a sole trader for portraits and wedding photography. Has anyone done this and what issues are there re tax etc? Any advice gratefully received
Little Jo 19 2.3k United Kingdom
9 Feb 2008 6:59PM
I'ts not a problem, takes just a few minutes to register as part-time self-employed. If you earn less than the threshold (just over 4000), you can opt out of paying class 2 contributions (National Insurance) as you're already paying NI through your full-time employment. Inland Revenue run free workshops for those who are registering as self-employed. Contact your local tax office for more info.

Jo
WelshKiwi 13 3.2k 2 Wales
9 Feb 2008 7:19PM
As Joanne Says above, its really simple. Takes very little time over the phone. And the courses are very informative and helpful. Also your nearest Business Eye group can help you as well.

You have THREE months to register AFTER you have received any money.

Good luck with your new venture.

Lee Smile
WelshKiwi 13 3.2k 2 Wales
9 Feb 2008 7:21PM
Business Eye website address is www.businesseye.org.uk

Phone 08457 96 97 98

Lee Smile
dasantillo 15 231 1 Wales
9 Feb 2008 8:16PM
The other good thing is you can offset your photo business against your normal employment earnings. When I quit work to become freelance, I was legally able to claim back a few thousand pounds in tax. It's very handy when buying new equipment for the business, say a nice expensive camera. All completely legal too. And don't forget you're allowed 40p per mile for self employment. You also get the joy of filling out the Self Assessment tax return form each year Smile

You will need to keep records of everything with receipts, of couse.

Not sure when the OP is from, but it's Business Link in England (rather than Business Eye in Wales). There's also appropriate ones for Scotland and Northern Ireland.

KR

Dan.
User_Removed 14 1.5k 1
9 Feb 2008 8:31PM

Quote:The other good thing is you can offset your photo business against your normal employment earnings. When I quit work to become freelance, I was legally able to claim back a few thousand pounds in tax. It's very handy when buying new equipment for the business, say a nice expensive camera. All completely legal too. And don't forget you're allowed 40p per mile for self employment. You also get the joy of filling out the Self Assessment tax return form each year

You will need to keep records of everything with receipts, of couse.

Not sure when the OP is from, but it's Business Link in England (rather than Business Eye in Wales). There's also appropriate ones for Scotland and Northern Ireland.

KR

Dan.



your wrong about the 40p per mile for self employment, this only appies if you work for someone and use your own car for work. 40p per mile is so you can pay petrol and repairs. i am self employed and all mypetrol bills that are used for business milage is deducted but i am not allowed a 40p per mile i drive tax allowance. j
steve_kershaw 15 2.3k 4 United Kingdom
9 Feb 2008 8:39PM
also claiming all your cars petrol repairs etc is a bad idea, as they assume you will use it for private use,

as regards to the op, the tax office run telephone helplines that are excellent, and will advice you the best way forward

you will need to think about public liability insurance
dasantillo 15 231 1 Wales
9 Feb 2008 8:41PM

Quote:your wrong about the 40p per mile for self employment, this only appies if you work for someone and use your own car for work. 40p per mile is so you can pay petrol and repairs. i am self employed and all mypetrol bills that are used for business milage is deducted but i am not allowed a 40p per mile i drive tax allowance. j

That's what my father-in-law (chartered accountant) told me. I don't claim any money for fuel as it's taken into account in the 40p. I've just looked into this a bit more and being self-employed, you can choose either the pence per mile method or the cost method where you claim fuel and other running costs, etc. I shall doubly check with my father-in-law though.

KR

Dan.
WelshKiwi 13 3.2k 2 Wales
9 Feb 2008 8:43PM

Quote:I've just looked into this a bit more and being self-employed, you can choose either the pence per mile method or the cost method where you claim fuel and other running costs, etc. I shall doubly check with my father-in-law though.


You are correct. We have just been told this by an accountant and a solicitor. Its an either or choice.

Lee Smile
Snapper 16 4.5k 3 United States Outlying Islands
9 Feb 2008 8:44PM

Quote:I shall doubly check with my father-in-law though.


And if he gives you a bill for his services, I'd check it very carefully! Smile
dasantillo 15 231 1 Wales
9 Feb 2008 8:50PM

Quote:And if he gives you a bill for his services, I'd check it very carefully!

LOL. Thankfully, he doesn't ask for anything in return for his services, other than me taking care of his daughter of couse Smile
zed 16 551 United Kingdom
9 Feb 2008 9:04PM
what does offset mean?
bfgstew 14 668 105 England
9 Feb 2008 9:35PM
Get a damn good accountant, mine costs 200 per year, send him/her all receipts etc and let them worry about it. Does for me.
Stew
MikeRC 15 3.6k United Kingdom
9 Feb 2008 11:30PM

Quote:What does offset mean?


...It means counteract as in:
...offset any expenses against your earnings.
looboss 14 3.1k 7 United Kingdom
9 Feb 2008 11:46PM
I think you will find the 40p per mile is only for the first 10,000 miles there after it goes down to 28p I think!

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