Employed and self employed?

[Sussex2016]

Hi all,

ive had a look around and can't seem to find a definitive answer.

I am currenly employed full time doing my "day job" and undertaking my electrical qualifications in the evenings. I have found a company that will allow me to work with them on occasions but on a self employed basis and will have to invoice them for my pre agreed labour rate.

My my question is do I need to register as self employed? And register myself as an official business? A little confused as I would be both employed and self employed.

Many thanks,
Tc

 

[PEG]

Hi,if your day job is PAYE,you will have to include your additional income,as earnings,and look forward to your welcome pack,mug,tee-shirt and coaster,to the self assessment club...

Any agreement,terms,certs,payment,etc,will leave a trail to this additional remuneration,and lets be honest,those EU information forms won't pay for themselves,yer know...:30:

 

[hightower]

Search for 'hmrc webinars' - there's lots of useful info in them to help you get your head around. But yes, you need to sign up for self assessment

 

[Octopus]

You need to register with HMRC as self employed. You will need to pay tax and class 4 NI on your 2nd income.

This means a tax return each year. Make sure your employer is aware of your 2nd income and you have the relevant insurances in place.

 

[hightower]

You need to register with HMRC as self employed. You will need to pay tax and class 4 NI on your 2nd income.

This means a tax return each year. Make sure your employer is aware of your 2nd income and you have the relevant insurances in place.

Why does employer need to be aware?

 

[Octopus]

Why does employer need to be aware?

Hum.... Depends on what your contact says

Edit. My 16 year old son works for a retailer part time. His contract is black and white. No second income without their permission - non notification is instant dismissal

 

[hightower]

Hum.... Depends on what your contact says

Most places just stipulate you've got to register possible conflicts of interest. If you are employed in one trade and self employed in a totally different trade there should be no need to inform your employer. But as murdoch says, it's probably wise to at least check your contract

 

[Risteard]

Why does employer need to be aware?

If there was no valid reason for them to be aware I wouldn't tell them as it is none of their business.

Contrary to what some believe they do not have a right to prevent you from doing any private work whilst employed by them. Such a covenant would almost certainly be declared unlawful.

 

[telectrix]

Search for 'hmrc webinars' - there's lots of useful info in them to help you get your head around. But yes, you need to sign up for self assessment

conflict of interests. could be poaching work from current employer.also there is the fact that employer might be wary of employee nicking stock for private jobs.

 

[hightower]

conflict of interests. could be poaching work from current employer.

Yes, but that would mean you've got to work the same trade in both jobs in most cases

 

[Octopus]

If there was no valid reason for them to be aware I wouldn't tell them as it is none of their business.

Contrary to what some believe they do not have a right to prevent you from doing any private work whilst employed by them. Such a covenant would almost certainly be declared unlawful.

Read my edited post #6

 

[Risteard]

Read my edited post #6

OK, but it still does not mean that the covenant in your son's contract is lawful. It may well not be. (I would suggest probably isn't.)

 

[Octopus]

OK, but it still does not mean that the covenant in your son's contract is lawful. It may well not be. (I would suggest probably isn't.)

He's at college so this isn't relevant to him! He does get over £7 per hour so he's very happy!

 

[HappyHippyDad]

Hi all,

ive had a look around and can't seem to find a definitive answer.

I am currenly employed full time doing my "day job" and undertaking my electrical qualifications in the evenings. I have found a company that will allow me to work with them on occasions but on a self employed basis and will have to invoice them for my pre agreed labour rate.

My my question is do I need to register as self employed? And register myself as an official business? A little confused as I would be both employed and self employed.

Many thanks,
Tc

The answer as said in earlier posts is 'yes' Sussex. I am 'employed' in a completely different job to electrics but I also work as an electrical installer for which I am self employed. You will need to register as a sole trader. If it all seems a bit daunting then I suggest you get an accountant for the first year, this will cost you approximately £300. Once you have received back your completed tax return (done by the accountant) you will see how straight forward it is to fill in as a 'sole trader' and can cease with the accountant.

Here is a useful link to setting up as a sole trader https://www.gov.uk/set-up-sole-trader/register

 

[VoltzElectrical]

With regards to informing your employer of your second job, I shall tell you about my own situation. I work for the Local Authority (council) and they have a comprehensive sickness policy. I am allowed to have a second job if I wish (I don't) but I have to inform them because if I get injured and am subsequently of sick on full pay, they may not pay out. If I did not inform them of my second job, and it was later discovered, even if my injury was not caused in my second job, I would still be guilty of gross misconduct and would be dismissed also losing out on my employer's pensions contributions (I think).

But as others have said, you will have to register as self -employed under the Construction Industry Scheme (CIS) and your invoice will be subjected to 20% deductions. You will then submit a tax return after April 5 every year which will detail your employed income, self-employed income, minus any expenses (tools, travel, etc) and you may have a rebate.

This is all very simple and can be done online. All the information is on the HMRC website and I have also found them helpful on the phone (others beg to differ). You should also have Public Liability insurance for your self-employment. This is fairly cheap and is tax deductible. In my experience it has been more tax efficient and simpler to claim mileage rather than fuel, insurance, repairs etc, but you should do the maths on this yourself.

Get a diary for you self-employment income and keep copies of your invoices and the CIS returns that will be issued to you from whoever is paying you.

Ask again if you want any more info. I must caveat all I have said is at least three years old now and things change so I stand to be corrected on any of this advice by more learned and up to date members on here.

Voltz.