Sole trader and full time employee?

D

Driven

Guest
Hi
I have a full time job (but it is a 1 year contract which will be renewed in a months time and i am treated as a full time employee).
My husband is out of work and things are tight as he is sole trader and unwilling to deregister and sign on (he was a builder and has some property that needs to be managed..)
i have the opportunity to take on some additional consultancy work (which does not conflict with my current full time role). If i manage to get sanction from my employees to conduct this additional work, is it possible for me to continue to work as a full time employee and conduct the additional work on the side or do i need to become a sub-contractor and register as a sole trader? What are the tax implications? I would prefer to remain a full time employee and declare the additional work at the end of the year if this is possible? Or am i dreaming?
Any advice welcome..
 
Hi Driven,

from Revenue's point of view there is no difficulty whatsoever with a person being employed in a PAYE job and also having some self-employed income. Think of how many employees have rental income! Unless you wish to hold back some tax credits to use against the tax that will be due your main employment won't be affected.

If the side-job you are being offered is not an employer/employee relationship then you will have to register as self-employed but if you are jointly taxed with your husband then you are jointly submitting tax returns anyway. (If you are not jointly taxed then you should be while he's not earning).

On a side-note, I assume your pay would take you above the meanstest limits for your husband to get any welfare payment? He would not need to close down his business to qualify. If you have any children then FIS might be an option.

Sybil
 
Hi Sybil
Thanks for your reply - i am confused

If the side-job you are being offered is not an employer/employee relationship then you will have to register as self-employed but if you are jointly taxed with your husband then you are jointly submitting tax returns anyway. (If you are not jointly taxed then you should be while he's not earning).

i would be providing individual consultancy services to directly to clients and it would not be an employer/employee relationship - So based on your advice i should register as a sole trader - My husband and I are not jointly assessed as far as i know however every year when he hands in his annual accounts - the accountant takes my P-60 and we claim the tax back.... Is this the same?

On a side-note, I assume your pay would take you above the meanstest limits for your husband to get any welfare payment? He would not need to close down his business to qualify. If you have any children then FIS might be an option.
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I didnt realise that he wouldnt have to deregister. the accountant advised him that he would not be eligible....:(
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If your earnings are being returned with your husband's then you are jointly assessed.

Here is a link to citizens information page which states that your husband does not have to close down the business to claim JSA. If your accountant advised him he would not be eligible then I expect your earnings must be above the meanstest limits.

If you would like to give an idea of your income level and whether you have children then someone can advise whether you might qualify for a meanstested payment.

If you are earning decent enough money then I'm afraid you won't.

Sybil
 
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