Self asses question

[dee]

I'm PAYE in my normal job but need to start doing self-assessment stuff for my extra web based activityf as I think I'm starting to be in profit ( even though by not much ) Questions please for those who know about this stuff:

1/ Do I need to start an Ltd company or can I just sign up for self-assessment under my own name and file accounts there?

2/ Does it matter if I invoice under say 'fab media ' but then do accounts under my own self-assessment name?

3/ If it turns out I make a loss, do I need to file reports or can I even get a tax rebate from my day job income?

4/ If i sign up for self assesments do i then need to file reports for ever even if i just stick to being PAYE ?

5/ Do I need to set up a business bank account ? All my stuff is just juggled around my usual accounts

Hope they make sense. Ta

 

[Adam H]

1. No , if not limited you are a sole trader filing a self assessment
2. Not sure, I always filled as myself , but had a brand name which invoices had on them so i guess its acceptable.
3.Yes you need to file every year regardless of earnings, its not for you to decide if you've earnt enough. You can earn 11k before being taxed on it ( although not sure how that works with being employed at the same time, also think its more than that now but still you need to file even if you don't go above the threshold to pay tax. )
4. You need to file while you consider your self having additional earning activities, if you stop doing it then you inform the inland revenue you are no longer self employed.
5. Not if you are a sole trader, but some do as apart of best practice. I personally never did as a sole trader as my income and expenses were super easy to calculate

Please note, I'm not an accountant or really know what im talking about when it comes to this stuff

 

[ian]

I'd advise you to hire an accountant; they will typically save you more than what you pay them. I can recommend someone if you need. In answer to your questions (not financial advice):

1. No, a limited company is a completely different entity. You can remain a 'sole-trader' (i.e. self-employed) if you wish. Just be mindful of tax limits.

2. You can give yourself a company name you trade under and include within your self-assessment; that is essentially what a sole-trader is.

3. You just disclose the lot and let HMRC determine that. An accountant will confirm.

4. You only have to self-assess whilst you have multiple streams of income like this; not if you revert to PAYE only.

5. You can use a personal account if you wish, though for simplicity of keeping your books straight and evidence for submission, I'd recommend a sole-trader/self-employed bank account. The bank will do a check against you, not the business, though may ask for basic details on what sector you will operate in, expected turnover etc. You can just use a secondary personal account if you wish.

 

[dee]

Thanks for the replies. My day job is all taken care of in terms of Tax / NI etc of course.

I guess in terms of self-asses I only need to file accounts for any extra curricular stuff? SO i dont need to worry about the PAYE stuff thats already taken care of ?

The extra stuff wont be much, but obviously ill have to pay tax on any profit as day job takes me over threshold.

 

[ian]

I think self-assessment means you have to disclose your existing paye in replacement of existing submissions.

 

[dee]

think self-assessment means you have to disclose your existing paye in replacement of existing submissions.

So you mean I have to tell my work not to disclose my earnings and I have to do it ? Mmmm.... not sure that will work

*edit - seems you can just tell them aswell and theyll know youve paid tax on it

 

[davedevelopment]

So you mean I have to tell my work not to disclose my earnings and I have to do it ? Mmmm.... not sure that will work

*edit - seems you can just tell them aswell and theyll know youve paid tax on it

You just have to tell HMRC you were employed by someone and fill in a few boxes for your employment, all of which can be found on your P60. I've been doing this since I started out with domains and freelancing, it's not so bad.