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Working full time and freelancing - do I need to set up as self employed??
Hi
I currently work full time in a non design job but I am getting some freelance design work in my spare hours.
Do I need to be setting myself up as self employed because technically I'm not...and is there a certain amount you can earn in your freelance work before you need to declare it or is it combined with the earnings in your first job??
Any advice would be great!
Thanks
I currently work full time in a non design job but I am getting some freelance design work in my spare hours.
Do I need to be setting myself up as self employed because technically I'm not...and is there a certain amount you can earn in your freelance work before you need to declare it or is it combined with the earnings in your first job??
Any advice would be great!
Thanks
- Contact in PM
Kate Blackham
Messages count : 1Likes count : 0Registration : 10 August 2010Hate to break it to you but technically you are self-employed.
I was self-employed about 8 years back and am now looking to get back into it now my kids are grown. Check out the Starting Out and Running Your Business sections on the site for up-to-date info but basically:
Anyone running a small business in their spare time, regardless of how many other employed jobs and the hours worked and how little earned, needs to register with the Inland Revenue within 3 months or face a fine. It's best to get in with the IR asap and they're actually really helpful - sent me a pack and everything last time around.
You can earn up about £5,000 (the IR will tell you) a tax year before you start having to pay NI contributions and I *think* it's a similar level for starting to pay tax as well.
Get hold of the IR asap - best to start off on the right foot rather than get into trouble with fines and fees. - Contact in PM
nirmalvechham
Messages count : 2Likes count : 0Registration : 21 August 2010Agree with Kate, you have to notify HMRC if you have an additional source of income when you start to freelance. You are eligible to pay income tax when your income exceeds £6,475 per year for 2009-2010. However if you have secondary source of income, by setting up a limited company and start drawing salary, then there are chances that you will be taxed at a higher rate. Its also worth checking your employment contract to check if you can freelance and earn outside your employment. But, we are not scaring you away from freelancing:happy, just the fact that it gets a little complicated when you are employed and try to freelance. Also worth checking out various kinds of freelancing either through sole propertiership or through limited company.
Nirmal