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What to do about freelance income

1 reply

remote · 17/06/2012 12:58

Hoping someone can help.

DH is employed in a permanent, full time role.

He is going to be taking on some extra work in connection with his job. Some will be for his employers and some for other companies but will have to be seperate to his salary as his employers can get this work done by dozens of outisde contractors and don't want to have to pay the contributions they would if was part of his salary. (notsure if relevant but the work is mainly computer based and will be done from home - there will be expenses such as printing costs so assume that some elements of that will be tax deductable?)

Also the work load will be variable, there is the potential to earn as much as £800-£1000 a month but some months there may be as little as £200.

What do we need to do to ensure DH pays the tax/NI on this extra income?

Neither of us has ever been self employed before so no idea where to start?

OP posts:
MrAnchovy · 17/06/2012 14:01

Lots of help on Business Link. Although he will be below the VAT threshold of £77,000 turnover, he will want to register for VAT voluntarily otherwise any external costs such as printing will cost him 20% extra (unless most of his clients are individuals, charities or banks).

There is a Mumsnet topic just for the self employed!

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