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tony_t3d

Small sideline business

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Hi, I am qualified cs 30, 31, 38,39, 46 currently working full time (37 hrs p/weeks) for the MOD doing all around maintenance so tree work is only occasional but this is what I want to do full time eventually (3-4 yrs time).

 

I intend on setting up my own business but was just after a little advice.

 

1. If I set up a small business now whilst working full time. Doing tree work on weekends. Would this affect my work tax code or would I be on a higher tax bracket on the business?

 

2. What other quals would you recommend I gain before eventually setting up on my own?

 

 

Many thanks in advance..

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Would have to do a self assessment at end of tax year, unless weekend work all cash in hand

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You will need to tell HMRC that you have started a business and, if you are not already submitting tax returns, they will send you a notice saying you need to. If you start your business now, then any profits earned in the period to 5 April 2018 will need to be included in your tax return for the year 2017/18.

 

Under the current system when HMRC have an idea what your business profits are, they are likely to revise the tax code for your employment so that they collect their estimate of tax on your profits from your day job however, the tax system is going through a fundamental change and the days of annual tax returns are coming to an end.

 

The HMRC's "Making Tax Digital" strategy is coming into effect and ultimately businesses will have to submit quarterly returns online with an year end declaration of  income tax and national insurance. It is likely that HMRC will seek to accelerate the payment of tax with quarterly payments on account instead of half yearly as at present.  

 

HMRC state that the intention of the MTD initiative is to make the submission of tax info easier and less of burden but I don't know what planet they inhabit if they think quarterly accounting returns plus an annual declaration will reduce the burden on small businesses. Also, HMRC expect businesses to use accounting software that is compatible with their systems to submit this information. 

 

At present it is likely that businesses with a turnover below £10k will be exempt from the requirement for quarterly online returns. While on the subject of impending changes to tax system, there are rumours circulating that the budget next week may see the current threshold for VAT registration (£85,000)  reduced to levels closer to those elsewhere in the EU. 

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you will need P L Insurance, business insurance on your vehicle(s)  waste licence if you transport it away from site, insurance for your tools would be a good thing but not compulsory 

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6 hours ago, daveatdave said:

you will need P L Insurance, business insurance on your vehicle(s)  waste licence if you transport it away from site, insurance for your tools would be a good thing but not compulsory 

PL is not compulsory.

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