Paul S
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yes you can.
go to www.hmrc.gov.uk and search for a form called CWF1. print this off and fill it out and send it off to the inland revenue address on the cwf1 form and its all done, your now self employed.
you will however need to ensure that the form is completed and returned to the revenue within 3 months of the end of the month in which you started trading. so if you start say 1st jan 08, then you have til 30 april to get the form in or else they will fine you £100.
you will also need to set up a direct debit to pay class national insurance which i think is about £2.20 a week but this can be done once you have got a reply from the inland revenue and you will just make one payment to catch up backdated to the date you started.
also, you will have to complete a tax return to disclose your self employment income and also put on the return details of your fulltime employment too as you income for tax purposes is all added togther.
as joe says above you can go limited company route as there are tax savings to make, but there is additional costs in administration and you will need an accountant to do the company accounts, company tax returns, company secretarial stuff etc.. and all that can cost in excess of £1000 a year to do.
self employed is better suited to people who dont expect to make a lot of profit and have little or no liabilities like loans or supplier debts (creditiors) plus they dont cost so much if you pay an acocuntant to do the accounts and your personal tax return for you. |
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Dr Stupid
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Yes, actually in law you are supposed to register with HMRC within 3 months of starting self employment, there is no reason why you can't be employed and self-employed at the same time. |
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Jo W
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I think this is a UK question, but the US answer is pretty helpful!
If you go to the Revenue's website there is lots of useful information, including how to register as self-employed:
http://www.hmrc.gov.uk/selfemployed/
Good luck! |
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donfletcheryh
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Well, yes, but it may hurt you. Financial services are oftem better if you are seen as in FT employment. It can even be much easier to buy a home or get a lease. |
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joediamonds12
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Why sole trader though?
Limited company is much better option and can be done from as little as £50.
I really don't know why anyone bothers with sole trader status, theres no protection at all. |
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Thin Kaboudit
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Indeed you can, and in fact, need to to conduct business legally!
Your business will exist as a "sole proprietorship", and you will file you profits (or losses) on your regular personal tax return using Schedule C. If you lose money, that may offset (reduce) your tax liability from your full-time job. But you're going to make LOTS of money, right?
You probably will also need a local business licence (check with the city/state tax office), and if you will be selling anything taxable, you'll need the info on how to collect (& remit) local taxes where you are...the folks that sell you your business licence (which usually costs about thirty bucks) can help you with that...
Good luck! I hope you do so well you can quit the day job and hire a half-dozen people! And don't forget, the US Government hopes that, too, that's why tax law encourages small entrepreneurs like you!
Happy New Year! |
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MICHAEL P
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Of course as otherwise the tax office would not be aware of your additonal income or the need to tax it. Bear in mind of course that your tax free allowance will be swallowed up by your PAYE job although you will be able to offset business running costs and expenses as usual. |
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v b
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You will be an investor.
Based on the facts and circumstances, you will NOT be classifed as a day trader. (I suspect you are asking if you can elect mark-to-market status....NO.) |
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