How to become self employed alongside my main 'other' job

[aly10]

Hi all,

I currently work within the housing sector and have been on maternity leave this past year. Whilst I have been off I have carried out and completed a few courses - I have done, swedish massage, hot stones, Indian head, Thai leg and foot and facials so far. Ive not long completed them and am just awaiting my certificates off my tutor which will allow me to be accredited and gain insurance.
I've always been interested in massage/holistics and did a courses a few years ago, however it didn't really take off as I found it hard to commit to alongside my full time job and other commitments I had at that time. I'm not looking to work in a spa/salon as I know many require a level 3. However I will be going back to work on a part time basis so thought this would be an ideal time to finally get back into it and offer these treatments alongside my main job. Then if i get enough clients I could look to reduce my hours and hopefully do this as a full time career change at some point in the future. (That's my hope anyway) For the time being though, I want to do this on a self employed basis and either offer it mobile or from home as I have a spare room.
I'm just confused about how I go about this and what steps I need to take after I've gained insurance. I've done a lot of reading but I'm finding it a lot to take in (maybe I still have baby brain!) My questions are, can I still be self employed but also be employed at my other job at the same time? If so, are both earnings taken into consideration for tax purposes? Do I need to register as a sole trader? Do I need to speak to my council about permission to work from home? Is there anything else I should be doing?
Sorry for the amount of questions I just don't have a clue where to start x

 

[Trinity]

Yes you need to register with HMRC as running a business as a sole trader, yes you will pay tax and national insurance on these earnings, you will need to do a tax return each year to declare these earnings and pay the relevant amounts. Your full time job will take up most of not all of your tax free allowance via your PAYE. Depending on your salary for your full time job you will probably pay the full 20% tax on your beauty earnings.

HMRC have articles and great help pages, they should be your source of information as they are the ones who will expect these details. An accountant can help you initially but it is quite simple to do if you take your time to understand what's required.

Get in to the good habit early on of putting 20% of any beauty earnings away to cover your tax bill. With any exceptions you may be entitled to for stock, expenses, etc. you may not need it all but it's then a lovely end of year bonus. Better to have saved it than be struggling to find the funds you need

 

[aly10]

Yes you need to register with HMRC as running a business as a sole trader, yes you will pay tax and national insurance on these earnings, you will need to do a tax return each year to declare these earnings and pay the relevant amounts. Your full time job will take up most of not all of your tax free allowance via your PAYE. Depending on your salary for your full time job you will probably pay the full 20% tax on your beauty earnings.

HMRC have articles and great help pages, they should be your source of information as they are the ones who will expect these details. An accountant can help you initially but it is quite simple to do if you take your time to understand what's required.

Get in to the good habit early on of putting 20% of any beauty earnings away to cover your tax bill. With any exceptions you may be entitled to for stock, expenses, etc. you may not need it all but it's then a lovely end of year bonus. Better to have saved it than be struggling to find the funds you need

Thank you.
I don't pay any tax from my other job as I am under the threshold currently.
Thank you for this I will give the HMRC articles a thorough read.

 

[Trinity]

You said you worked full time, a full time job should put you over the tax free allowance of c.12k. Even if it doesn't, any earnings you make from beauty will take you up to the allowance and you'll pay 20% tax on anything earned over that

 

[aly10]

You said you worked full time, a full time job should put you over the tax free allowance of c.12k. Even if it doesn't, any earnings you make from beauty will take you up to the allowance and you'll pay 20% tax on anything earned over that

I did work full time but I'm going back part time after maternity, so I will be under the threshold to pay tax.
I just wanted to know if they take tax off just my earnings I may make from my massages as I'm not paying tax from employment. I wasn't sure if they added both earnings up together and then tax that combined income. I haven't set up yet, but am hoping to go mobile/work from home alongside my part time job. It's likely going to take me a whole to get up and running and gain clients

 

[Trinity]

You'll add the two earnings together, you don't pay any tax on the first £12k for the year. So if you earned 10k in your part time job and 5k in your beauty business, you'd declare earnings of £15k, your tax free allowance is £12k so you'd pay tax on £3k.

This is a very simple version, things like maternity pay, child benefit, if you are married, other benefits you may claim, etc are other factors that need to be taken in to account.

 

[WeltZumerr]

Thank you.
I don't pay any tax from my other job as I am under the threshold currently.
Thank you for this I will give the HMRC articles a thorough read.

Enjoy the tax-free life while it lasts! HMRC articles will sort the rest—read up and stay ahead!