Self employed alongside full time job

[slocm3105]

Hi guys, I've always wanted to become a self employed sparky and now I've starter a new job doing shifts so ill have much more spare time to start building up my customer base. I'm wondering what steps I need to take in order to do this legally alongside my full time job?

Cheers




Matt

 

[snowhead]

First step is to see if your new employer will allow you to also work as self employed running your own business.

 

[Octopus]

If the employer says its ok, then you need PL ins, maybe PI, Scheme membership if you're going to do domestic and a call to HMRC. Don't forget to inform your vehicle insurance co too

 

[ferg]

Having done exactly what you are thinking of doing, the hardest thing was motivation for working all days off and sometimes 16+ hours a day 7 days a week.

I found that the more tired I got the slower I got and the more hours I had to work.

Eventually something has to give. :icon11:

You can end up doing neither job to the best of your ability.

I was lucky in that I was able to go part time after a while then give up being employed.

The only thing I miss about being employed is the regular as clockwork income.

 

[slocm3105]

I'm definitely aloud to do it alongside my current job as I'm not working as an electrical contractor so it doesn't get in the way of their business. I register as self employed then just for my private work I guess?

 

[snoopydo]

your big expense will be what has already been listed, ie insurance and memberships. Talk to hmrc and register with them if you need to pay CIS etc.... then just do self assessment and accounts as you normally would.

 

[snowhead]

I'm definitely aloud to do it alongside my current job as I'm not working as an electrical contractor so it doesn't get in the way of their business. I register as self employed then just for my private work I guess?

Is that your opinion or have you asked your (new) employer?
Are you on a trial period in your new job?

Your employer could see you as being less able to carry out work for them due to tiredness, as above, or injury received from working in your own name not the obvious of being in competition.

I worked with someone years ago who lost full sick pay as a result of a sports injury (broken leg) from amateur football.

There was a case on here recently where someone got sacked / Let go because of it.

 

[slocm3105]

Is that your opinion or have you asked your (new) employer?
Are you on a trial period in your new job?

Your employer could see you as being less able to carry out work for them due to tiredness, as above, or injury received from working in your own name not the obvious of being in competition.

I worked with someone years ago who lost full sick pay as a result of a sports injury (broken leg) from amateur football.

There was a case on here recently where someone got sacked / Let go because of it.

I have asked and it is definitely fine with them

 

[Geordie Spark]

Get and keep receipts / invoices for EVERYTHING you spend and that includes meals out with Your Lass (that was entertaining a possible client wasn't it???) and when you buy new clothes for the disco it was work clothing for business meetings and the same goes for your new shoes that you bought for your mother's wedding. Your beer down the pub was "hospitality for clients". Bus tickets and train tickets that your kids bought to get them to town on a Saturday afternoon are "Travelling Expenses"

Declare a part of your house is an office and a percentage of the cleaning materials bill is tax deductible - as is what used to be called "Rates" now called Council Tax. Cleaning materials for your house - get a receipt for washing powder, fabric conditioner buckets, mops and duster - this office needs to be kept clean - and washing up stuff and put that down Declare a part of your house is an office and a percentage of the cleaning materials bill is tax deductible - as is what used to be called "Rates" now called Council Tax.

A percentage of your gas & leccy bill and phone bill can be claimed too.

The list is endless and when you're struggling to get and stay afloat every little helps - as the old lady said when she piddled in the sea.


I once received a tax demand from "The Revenue" for £186 but by the time my accountant had finished with them they ended-up giving me a cheque for £1,200.

He claimed for everything - including my underpants and socks ( work wear innit ) He was an ex- Revenue bloke and knew all the ins & outs of the system and what was allowed and what wasn't.

I used him for years and paid very little tax.

 

[Geordie Spark]

VAT is another one where you can be a bit creative. I successfully claimed the VAT back on a bedroom carpet because the room had a desk and telephone in it so it was an office.

My business partner tried to reclaim claim the VAT on his shiny new £6k new kitchen because it was the works canteen wasn't it???!!

 

[slocm3105]

All good little tricks that will come in very handy mate thank you . I'm just using my own car or the time being but when things pick up ill get myself a tidy little van with some sign writing. Dies anyone know of a decent second hand can dealer in south west?

 

[Geordie Spark]

All good little tricks that will come in very handy mate thank you . I'm just using my own car or the time being but when things pick up ill get myself a tidy little van with some sign writing. Dies anyone know of a decent second hand can dealer in south west?

I used a car for all my business - NEVER owned a van - and got tax allowances for the car. Just had to make sure it was classed and insured as a business vehicle.

In 20 odd (VERY odd) years, i got through

2x Fiestas
2x Escorts
2x Volvo 760's
4 Mazda 626's

NEVER had a van and had only one car broken into and caught the thieving scroat that did it and the bill to replace the windows in his house cost a damn sight more that the repair to my car did!

NOT a good idea to sign write a van in my view. It advertises what you do and what's in the van to too many people if you catch my drift ...........

 

[plugsandsparks]

Main vehicle is Estate car, I charge 45ppm for 10,000mls, then 25ppm to the business through my personal expenses, along with food when on site. When I have needed a VAN, (once in the last three years) I rented one, claimed VAT back on hire and fuel. I think (hope) some of Geordie's accounting was tongue in cheek ) -all my gear (except pants) are logoed and boots are safety and I always buy from a proper PPE shop so there's no chance HMRC could claim my BOSS suit is not really workwear - ha

 

[Welchyboy1]

I used a car for all my business - NEVER owned a van - and got tax allowances for the car. Just had to make sure it was classed and insured as a business vehicle.

In 20 odd (VERY odd) years, i got through

2x Fiestas
2x Escorts
2x Volvo 760's
4 Mazda 626's

NEVER had a van and had only one car broken into and caught the thieving scroat that did it and the bill to replace the windows in his house cost a damn sight more that the repair to my car did!

NOT a good idea to sign write a van in my view. It advertises what you do and what's in the van to too many people if you catch my drift ...........

Dunno how you can use a car to turn up to work as a long term solution, maybe ok if your just starting out but nothing to me says unprofessional more than turning up to a job in a fiesta with mini trunking sticking out the window

You just look like a part-timer/chancer and wont be taken seriously

nice clean van with sign writing, and smart work embroidered teeshirts is what you should be aiming for eventually


You want to look like a professional business so you can charge accordingly and make the right impression

thieves will break into any van parked in a vulnerable place

without sign writing but rod tubes and ladders on the top its pretty obvious your a tradesmen

you can only invest in better locks, a van vault and decent tool insurance

 

[Spurs]

Ha ha your right, might as well turn up on a pushbike with trunking on your shoulder, and tools in the shopping basket on the handlebars.

 

[UNG]

I charge 45ppm for 10,000mls, then 25ppm to the business through my personal expenses, along with food when on site. When I have needed a VAN, (once in the last three years) I rented one, claimed VAT back on hire and fuel.

Not sure how you run a vehicle at those rates I do all my mileage at one rate regardless of miles travelled. HMRC don't set mileage rates they just tax you on what they consider to be profit i.e. anything over there set limits, also if you carry a passenger for work you can pay an extra 5p/mile for that, the biggest joke in the HMRC allowances is you can claim 20p/mile on a pushbike

With regard to the VAT once your company has paid your mileage it can reclaim an amount equal to the VAT that would be paid on the fuel for each mile you travel, Google "VAT reclaim on mileage allowance" it could save you some money

 

[plugsandsparks]

Thx will have a look

 

[plugsandsparks]

Not sure how you run a vehicle at those rates I do all my mileage at one rate regardless of miles travelled. HMRC don't set mileage rates they just tax you on what they consider to be profit i.e. anything over there set limits, also if you carry a passenger for work you can pay an extra 5p/mile for that, the biggest joke in the HMRC allowances is you can claim 20p/mile on a pushbike

With regard to the VAT once your company has paid your mileage it can reclaim an amount equal to the VAT that would be paid on the fuel for each mile you travel, Google "VAT reclaim on mileage allowance" it could save you some money

Actually reminded me of when I paid myself a little too much in mileage after a few letters and calls back and forth with HMRC what I found out was that any overpayment of mileage attract income tax for the employee but not NI for the employer.

 

[Geordie Spark]

Dunno how you can use a car to turn up to work as a long term solution, maybe ok if your just starting out but nothing to me says unprofessional more than turning up to a job in a fiesta with mini trunking sticking out the window

You just look like a part-timer/chancer and wont be taken seriously

nice clean van with sign writing, and smart work embroidered teeshirts is what you should be aiming for eventually


You want to look like a professional business so you can charge accordingly and make the right impression

thieves will break into any van parked in a vulnerable place

without sign writing but rod tubes and ladders on the top its pretty obvious your a tradesmen

you can only invest in better locks, a van vault and decent tool insurance

It worked very nicely for me and that's all I was ever interested in and that's all I have to say on the matter.

 

[plugsandsparks]

Plenty of trades use estate cars, it more common than some people think. As for those "vans" like connect or berlingo that I see some sparkies using, I do get a good laugh at the wholesalers when they get the mini trunking or unistrut and think ahhh *ugger. I am very very lucky in that my wholesaler actually delivers my big stuff.