Part-time PAYE worker and setting up as sole trader

[theoneill]

Hi All,

My wife has been given the opportunity to teach in our local community center for about 6 hours per week. She is currently a part-time PAYE worker and she wants teach in addition to her part-time as the income she will generate from this venture will not be sufficient for her to leave her current position.

The teaching role will involve her renting space from the community center, so she will need to advertise her course and purchase equipment. In effect she will be working for herself.

So my questions are as follows:

1. Should she set up as a sole trader?

2. Will she be entitled to offset room rental and equipment purchase against taxable income?

3. Will setting up as a sole trader affect her current PAYE position?

4. Is there anything else we should consider.

Apologies for the elementary questions

 

[Zacchaos]

Hi,

First up, teachers are generally considered to be employees - so when you say teacher, do you mean it in the traditional sense? Who will she be paid by - the community centre or those attending the classes? If it's the centre then she will be an employee.

Say for example a dance instructor who was paid by those attending the classes could set up as self employed and deduct expenses such as room hire etc.

Setting up as a sole trader will not effect her current PAYE position.

The main consideration when setting up as self employed is the obligation to complete a tax return and keep proper books and records.

 

[theoneill]

She will be just renting the space from the community center, so her income will be whatever she charges less rent and equipment.

This is all new to both of us, we have no experience in book or record keeping.