Starting out while employed

[brodders97]

Hi all,

I’m currently in full time employment and want to start doing jobs on the side, obviously non notifiable ones as I couldn’t justify paying for a CPS. I want to do it all legally so any tax would be declared.

My contract with my current employer is worded very well and prohibits me completing work as a business or sole trader.

I’m wondering if it’s possible (and legal), to start doing work and declare the earnings at the end of the year to HMRC through a self assessment tax return form, and not becoming a sole trader, ltd etc

Thanks

 

[Dustydazzler]

yes you can be a sole trader without being a Ltd company

I did this for many many years

there are 2 boxes on a SA tax return

Income from employment and income from self deployement

 

[brodders97]

yes you can be a sole trader without being a Ltd company

I did this for many many years

there are 2 boxes on a SA tax return

Income from employment and income from self deployement

Sorry that’s not what I meant. Technically I’m not breaching my contract if I don’t set up as a ST or LTD etc.

Can I run a side hustle by declaring my income with a tax self cert form. Not being a sole reader or ltd

 

[Dustydazzler]

Sorry that’s not what I meant. Technically I’m not breaching my contract if I don’t set up as a ST or LTD etc.

Can I run a side hustle by declaring my income with a tax self cert form. Not being a sole reader or ltd

Hmmmm not sure

I think you can earn £1000 ( but you will need to check this ) anything over a £1000 and you need to set up as a ST

 

[brodders97]

Hmmmm not sure

I think you can earn £1000 ( but you will need to check this ) anything over a £1000 and you need to set up as a ST

Thanks for your response, might be worth a call and ask for clarification

 

[catdog1121]

If you do jobs for money and you act as yourself you are a sole trader, if you have a limited company and you do work then you are an employee of the limited company and owner. You are either one or the other..

It might say something like that in your contract but its not really enforceable, all they could do is sack you but I am going to have a wild guess that the sort of work you will be doing will not be in competition with your employer? Say you work as an industrial sparks but want to do domestic on the side then you could ask your employer for permission, that bit in your contract is mainly to imagine your at a customer and they say "Oh can you also do this for me", you could say "Yeah, I can do that through my own company and will be cheaper for you". Basically you are then undercutting and stealing work from your company which is understandable they would want to not allow you to do this..

You could setup a company in your wifes name and then do work through that company, however you do it though you would be in breach of your employment contract..

Make sure you get liability and if your doing eicr's indemnity insurance... Joining a CPS is only about £550 a year.. I am semi retired do bits an pieces, only work about 1 day a week if that, I have only done one notifiable work in like the last year but its still useful to have the cps as have used their helpline a couple of times, it also saves you if you did get into trouble you dont need to prove competence in a court as the cps has already assessed you as being competent..