Possible To Stop Being Self Employed?


Possible To Stop Being Self Employed?

Postby glenbelt on Thu Jun 03, 2010 4:39 pm

Hi,

At the moment I am self employed - I own several websites and I earn money from advertisements that are displayed on these sites. I basically want to stop being self employed, and to go and get a different, part time job. I'm wondering if it is possible to simply stop being self employed? I will still own the websites which will still bring in a little money, and I may spend time working on these in my spare time, so would I be able to stop being self employed or would I have to continue as I am?

I wasn't sure if maybe I could cancel my self employment and then on any personal yearly tax return form I put the income from my websites down as "additional income"? Would that be right?


Thanks for any help :)
glenbelt
 
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Re: Possible To Stop Being Self Employed?

Postby mullet on Thu Jun 03, 2010 6:57 pm

This is not easy to answer. A lot probably depends on the level of income that you receive from this source. If it's only a couple of hundred a year with few if any expenses claimed, then I doubt that HMRC would care whether it is declared as self employment or other income. But if the income is more significant then self employment pages are probably the way to go.

It isn't a case of "cancelling" self employment. If your income is below the Class 2 NICs limit, stop paying. If you cease to be self employed, put a cessation date in your tax return and don't file S/E pages the next year. No other form of notification is required.
mullet
 
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Re: Possible To Stop Being Self Employed?

Postby glenbelt on Thu Jun 03, 2010 7:15 pm

Thanks MSP.

The thing is, its hard exactly to tell how much I will earn from it in the future, and it varies so much that its hard to tell how much it will be.
Am I only okay "cancelling" my self employment if I think my earnings will be less then £5,075 for the year?
glenbelt
 
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Re: Possible To Stop Being Self Employed?

Postby JRG on Thu Jun 03, 2010 7:40 pm

The question is whether the part-time job you intend getting means that you become an employee?

If so, then you will be paying Class 1 NICs, which entitle you to the State Pension. In this case there will be no need to stay self-employed. You will just have to declare the extra website income on your Tax Return.

If not, then you should stay self-employed, and continue paying Class 2 (and possibly Class 4) NICs, which entitle you to the State Pension.
JRG
 
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