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Sole trader with full time job. How to do it?
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
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
Jo
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
You have THREE months to register AFTER you have received any money.
Good luck with your new venture.
Lee
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.
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.
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
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
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
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.
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
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
