Celestial Caravan said:
His tax allowance will be used up by his paye job. All his self-employed profit will be taxed at 22% or 40% depending upon his overall level of income from all sources.
Yes but he still has the tax allowance in the first place which was my point.
caff said:
Thanks all, really helpful advice.
Income tax - bah - looks like I'll be taxed at 40% then - because I earn over £29k in my daytime job.
So it looks like I'll pay income tax @ 40% and a bit extra for NICs on top of what I currently pay in my daytime job.
Another question - do I pay corporation tax as a sole trader? Or does this only apply to limited companies?
Also bank account - can't see much harm having a business account as long as the fees are low / non-existant. It would certainly help keep my finances separate. I'll pop in to Abbey today to pick up some leaflets. I take it everything relating to the business like bank charges count as expenses?
You won't pay corporation tax as a sole trader. If you earn £29,000 as your main job you would still have a bit left to earn which would be taxed at 22% not at 40%.
Most business expenses you can claim back as tax deductable, but some you can't. I wish I could claim congestion charge fees as an expense, but I can't. Seems crazy as my business has no choice but to pay them in the line of work I am in.
