I currently have two jobs - one is regular where I've got a contract and the taxes are being taken care of by the employer, the other is part-time for a start-up, without a formal contract, which I do in the evenings and I'm paid without any tax deductions. I went to HMRC and checked their section on self-employment so that I can pay taxes on my second employment. Following their links, I eventually landed at a page to register my "business" (https://online.hmrc.gov.uk/registration/newbusiness/introduction). This confused me slightly, as it's not technically my business. Could somebody please perhaps explain if I'm going the right route and whether it would affect my tax status in my primary job.
Any responses would be greatly appreciated!
-- Edited by macduy on Saturday 28th of July 2012 04:37:19 PM
HMRC are not talking about the business that you work with but rather registering your business with HMRC which supplies services to the clients business (as a sole trader this would be registering yourself as the business).
What services are you providing to the client? Is it at all related to bookkeeping or accounts?
Does your primary contract employment allow you to work in the business that you are outside of work? For example most accounting practices would limit workers ability to offer freelance services within (say) 5 miles of the their business.
If your business is anything to do with bookkeeping or accounts then you must be registered for Money Laundering or face an unlimited fine and possible imprisonment. Thought that I needed to throw that one in there just in case was something that you were not aware of.
Hope that helps to get you started,
kind regards,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Oops, I have completely missed the focus of the forum - I am so sorry! I was simply looking for tax advice and stumbled across this forum through a google search. I am actually a software engineer and neither job is remotely related to bookkeeping or accounts. However, I believe your first sentence may have answered my question anyway.
Thank you for your answer. I apologize for having posted in the wrong forum!
Hi Mac, thanks for explaining your situation. I'm sure Shaun will be interested in this when he gets back online. You asked some classic questions and are in the field where there has been most dispute over employment status. If you spoke to HMRC and gave your identity, then it is important that you are prepared for any challenge to your status.
Much as I dislike recommending this HMRC tool, before registering as employed or self-employed it might be an idea to have a read of this page and discuss the evening work with your contractor/employer.
Generally speaking, a job is either self-employed or employed according to how much control you exercise over what you do, how you do it, whose tools you use, what time you start and if you are free to send someone to attend to those duties in your place. Each status is considered on its own merit. Having a contract, being part-time, nor his business being a start-up makes you self-employed on their own. As, he is not deducting tax, it would appear your evening contractor considers you are doing this on a self-employed basis.
Regarding tax, it is the person who is taxed and not the employment. Ninety percent of the time this will all work out alright in the end but it may require submission of a Return, so you are correct to register is some capacity.
