Cash in hand jobs, making it legitimate

[jaychops]

DH is high up the ladder in his engineering job and works full time employed by a company. He's done a couple of cash in hand jobs and more offers are coming through. He'd like to take on the extra work offers as and when they come through but do them legitimately. I'm totally clueless about this kind of thing. What does he need to do? Is it as simple as declaring his earnings or does he need to set up a business?

He just needs to complete a self assessment with HMRC annually. No company needed, he can be a sole trader .

Does he have insurance to do the work on a self employed basis away from his main employer?

does the company he works for allow self employed working within the same industry?

I set up a limited company to do this, cost about£20.0. I do my own book keeping and my accountant will file it at year end. But sole trader is fine too, just had different liabilities if anything goes wrong down the line.

And you can do the above retrospectively

@Doggymummar would he need an accountant for any legalities? It won't be an overwhelming amount of work so it's something he could monitor himself.

An accountant will only take care of his tax liabilities. If there are other liabilities to consider depending on the type of work he is doing, other insurances may be required.

It is true that he can operate as a sole trader. But be aware that if anything goes wrong - he makes a mistake, he's sued, he accumulates debt he can't pay - is your home and marital assets they can come after. I would definitely think hard about that.

And do check his employer will allow it. Many companies won't allow it. And he doesn't want to lose his job for a few side jobs.