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Tax: PT Employed and Business Venture(3 Posts)
Wonder if I could get a little insight to an idea I have.
I work PT(21h) for a company. Because I earn under the threshold, I don’t pay tax. Think I come out just over 9k.
However, I’m wanting to do more, I sadly can’t get a new FT job as we can’t afford childcare but I have been researching a potential business venture I can do PT from home.
My plan was to still work PT nights in my current job while the venture builds up as I work during any downtime I get when I get home and then eventually give up my role if I feel it is a better opportunity to focus on.
However, Because I am planning to work PT in my current role and need to register Self Employed for this new venture, I am unsure how much my earnings will be until it is in full swing. I have ran a small side business before and when it came to doing my SA and paying any tax, I paid at the end of the accounting year.
How does this work when your current PT job doesn’t tax because of under the threshold, do I still pay any bills at the end of the year or because I will still be working in my current job while running this, could this cause a lot of issues.
Sorry if this sounds like jibberish but just trying to make sure I dont shoot myself in the foot as money is tight as it is, I dont want to have a massive bill mid year or a surprise charge somewhere.
Tax return at the end of the following financial year. I just completed mine for 18/19 so any tax due is up to two years after you've earned it. Tax return takes all details from job/self employed work and calculates tax owed. You may, in the future, have to pay some tax on account at the beginning of a tax year but that is something to worry about much later when you self employed income is higher.
Thanks so much. It’s been a few years since I was SE and since I’m not taxed for my PT job that this might cause issues.
I’ll be hiring an accountant to make things a bit easier but been working on finalising my plan and my start up costs and wanted to make sure no sudden bills appeared when I have everything jotted down.
I’m unsure if NI requires to be paid differently.
When registering my last self employment, my business wasn’t going to make a lot of money (selling hobby pieces) and there was something about NI2 & NI4, I’m not sure if this was still the same.