Some questions about setting up a new business

[ismellpie]

DH is self employed and upto the beginning of december he worked for a local company unfortunately they didnt have enough work for him and had to let him go.

We want to set up a new business, Do we have to tell the taxman or will it be ok as he is already registered as SE?

His tax has always been taken out of his wages weekly by his old employer, what will happen now? We he have to pay weekly or monthly?

Do we have to tell them now or can we wait a month to see if the business actually takes off?

Any advice would be welcome. Thanks

Is this the construction industry? He could contemplate claiming redundancy from his previous employer as these arrangements are often not self-employment in the eyes of the law.

Make sure he gets all the tax deduction certificates for work done up to December, and keep paying Class 2 NI. He doesn't have to tell HMRC anything, his status hasn't changed.

He will not have to pay tax himself until 31 January 2013. He will need to keep careful records, if he does more work for another builder he will have tax deducted under the same system as before but if he does work directly for a householder for instance there won't be any deduction. You sort all this out in the tax return which you can do after the end of the tax year on 5 April.