simplename
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New member here, been reading loads of posts here, very interesting indeed - even by saturday night standards.
Anyhow I'm currently in full time employment and want to stay in it for perhaps another year and a have - in my current day job. However I would also like to start as a sole trader in the evenings/weekend type of thing, which I can do considering its mainly web based work I would specialise in and would involve small amounts of money and transactions, perhaps not more than 5,6,7 transactions a year totalling maybe around 10-15k. Then come a years and a half time I plan to go fully LTD and leave the current day job.
My question I guess then is this allowed and how does it work in terms of tax?, can I stay in the PAYE system and then do a separate but related self-assesment for any sold trader business generated profits (not much - but in principl?) and can everything then be combined up to see what I owe or am due back?
Also what is the tax rate for sole-trader self employed person, I've seen 47% mentioned, but I don't understand why that would be in place. Does it not just work the same way as PAYE - ie pay 20% on a certain amount and the 42% on the balance.
Help on these issues is much appreciated. I will respond.
Anyhow I'm currently in full time employment and want to stay in it for perhaps another year and a have - in my current day job. However I would also like to start as a sole trader in the evenings/weekend type of thing, which I can do considering its mainly web based work I would specialise in and would involve small amounts of money and transactions, perhaps not more than 5,6,7 transactions a year totalling maybe around 10-15k. Then come a years and a half time I plan to go fully LTD and leave the current day job.
My question I guess then is this allowed and how does it work in terms of tax?, can I stay in the PAYE system and then do a separate but related self-assesment for any sold trader business generated profits (not much - but in principl?) and can everything then be combined up to see what I owe or am due back?
Also what is the tax rate for sole-trader self employed person, I've seen 47% mentioned, but I don't understand why that would be in place. Does it not just work the same way as PAYE - ie pay 20% on a certain amount and the 42% on the balance.
Help on these issues is much appreciated. I will respond.