Being employed and self employed, Please help advice needed

(8 Posts)
DerbyshireNanny Mon 20-May-13 10:40:44

HI
I currently work as a nanny Tuesday-Friday.
The rest of the time I have started to provide babysitting, event childcare proxy parenting etc to different parents. I Know I need to register as self employed for this but am a bit unsure what to do, what it effects etc.

When i register, will it effect what i get paid from my employer, will it change my tax code? This is something i'm really hoping does not happen.

Im not expecting to earn much from my self employment at the most i would say £3000 per year net but this will probably be a lot less as its something I just do now and then. What taxes insurance etc will need to be payed on this.

Sorry if im a bit vague but i really dont know what I need to know.

thanks

MirandaWest Mon 20-May-13 10:52:35

I am employed and self employed. You need to register with HMRC and will complete a tax return for each year (has to be completed by January 31st of year after ie for year 2012/2013 it is submitted January 31st 2014 with tax year ending 5th April). You put your employed income and self employed income on it and your tax payable is worked out.

If you earn £3,000 self employed you won't need to pay class 2 national Insurabce although you do need to complete a form about it.

It won't affect how much you are paid by your employers and your tax code won't change (I have lots of tax codes but this is because I have a lot of employments so like to spread it out!)

Hope that makes sense smile

DerbyshireNanny Mon 20-May-13 11:04:23

Ok great thanks for that, what is the class 4 national insurance all about?
It says if differing them you need to do it before April? Im not yet registered so how do i defer this?

MirandaWest Mon 20-May-13 11:09:05

Class 4 NI are for self employed profits over a certain amount (can't remember what but more than £3,000). When did you start working self employed as you need to resister within 3 months of that.

DerbyshireNanny Mon 20-May-13 11:10:40

I only started up last month, I havent took any work as of yet, just been busy advertising trying to get it going. Been looking at all the information on hmrc but just find it all really confusing.

riksti Mon 20-May-13 12:01:23

Class 4 NI is not due until your profit (not earnings) are above £7,755.
You will have to register for Class 2 NICs (form CWF1) and this should also register you as a self-employed individual.
If your profits are below £5,725 a year you can also do the form CF10 and thereby not pay Class 2 NICs either. Paying class 2 NIC qualifies you for state pension for that year but if your employment income is more than £109 per week then you qualify for state pension for that year anyway and paying Class 2 NICs has no advantage.

WilsonFrickett Mon 20-May-13 17:00:56

If you're advertising already, keep a careful not of your business expenses. Do not just think 'Oh it's OK, I'll remember everything' because you won't ::voice of bitter experience::

You will be able to set some of your expenses off against your income, so paying less tax. Again the HMRC website will help you understand what can be offset, but I'd think your advertising costs, travel to jobs etc will all be claimable.

Fraxinus Tue 11-Jun-13 21:32:28

You might find, weirdly, that you get a tax rebate.... Not sure why though

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