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Working full time, wanting to do some part time work
Hello, I have been reading through the forum and trying to get some ideas on doing some freelance work.
I currently work full time as a designer and would like to be able to take on small projects a 4/5 times a year so approx 2-3k per annum so not a lot of money and not really a lot of work, but I'd like to do it officially etc. I currently earn close to the higher rate tax rate in my full time job and so, I have a few questions.
1) I was thinking of registering as a sole trader - do I simply register and then report back each year what I earned and then pay tax on this?
2) What sort of tax do I have to pay?
3) What do I have to pay if I am not working?
4) If I decide to stop doing the freelance work, can I simply unregister??
5) What happens if my freelance earnings push me over into the higher tax rate band, will i be worse off?
6) How does the above affect my insurances etc (motor policy asks if I am part-time employed, house policy says no business use etc)
That's it for now - thanks to you all if you offer some help.
I currently work full time as a designer and would like to be able to take on small projects a 4/5 times a year so approx 2-3k per annum so not a lot of money and not really a lot of work, but I'd like to do it officially etc. I currently earn close to the higher rate tax rate in my full time job and so, I have a few questions.
1) I was thinking of registering as a sole trader - do I simply register and then report back each year what I earned and then pay tax on this?
2) What sort of tax do I have to pay?
3) What do I have to pay if I am not working?
4) If I decide to stop doing the freelance work, can I simply unregister??
5) What happens if my freelance earnings push me over into the higher tax rate band, will i be worse off?
6) How does the above affect my insurances etc (motor policy asks if I am part-time employed, house policy says no business use etc)
That's it for now - thanks to you all if you offer some help.
- Contact in PM
glebe digital
Messages count : 105Likes count : 2Registration : 21 December 20061) Yes, you'll do a 'self assessment' at the end of each tax year.
2) Income tax? I don't know what you mean........
3) Ni contributions, about 30quid a quarter.......
4) Yes
5) Not worse off, just the higher 'band' of tax on anything earned over that band.
6) Check with your insurers....CGI Specialist - Contact in PM
Stufer
Messages count : 6Likes count : 0Registration : 23 October 2007Thanks for the reply
2) what percentage do I pay or is it based on my tax band for that year?
3) NI contributions are required every month? Thats pretty crap as I might only earn about 1k a year and losing 360 of it on NI almost makes it not worthwhile...
Thanks for your help
I will probably have more questions tomorrow when I've had a chance to think about it - Contact in PM
ali g
Messages count : 3Likes count : 0Registration : 21 June 2007NI Rates
Hi
I'm quite new to freelancing too - I have one long-term client on a freelance basis, while I also work part-time for an employer while I test the water..
With regards to NI contributions, it works out around £25 a quarter so not too bad.
Hope this helps. - Contact in PM
Stufer
Messages count : 6Likes count : 0Registration : 23 October 2007hi ali g - thanks
I don't expect to earn huge amounts so dont want my earnings to be wiped out by NI. I read somewhere that I can apply for reduced NI if I earn less that 4700 - do you know much about this? - Contact in PM
glebe digital
Messages count : 105Likes count : 2Registration : 21 December 2006
That's your 'total income' if it doesn't exceed £4,700..........you'd need some low overheads to live on that, that's for sure.:)Stufer, post: 3181 a écrit : hi ali g - thanks
I don't expect to earn huge amounts so dont want my earnings to be wiped out by NI. I read somewhere that I can apply for reduced NI if I earn less that 4700 - do you know much about this?CGI Specialist
