Freelance designers tax as second income

[neilkayjones@tiscali]

I want to start to doe some freelance work but don't know where i stand when it comes to tax and NA and VAT. What do i have to do to make this legal and pay the right contributions for the work i do and how will this effect me when i am already employed as a designer by someone else?

Thank you so much if youo can help as i really need it. Thanks, Neil

[demetris]

First of all you need to decide whether you will be trading either in your own name or as a limited company. Depending on your decision, there might be tax savings.

Second, you need to register with the tax authorities. There are various fines for late registration, non-filing in time etc.

About NIC, there is an upper limit of a maximum amount that a person has to pay if he is both self employed and employee.

I hope this helps.

Demetris Savva BA FCCA
http://www.tax-accounting-london.info
constantinesavva@accamail.com
We have several information on the subject that interests you in a Special Report on how to save taxes that is sent automatically to subscribers to our FREE tax and business advice.

[neilkayjones@tiscali]

Thank you for your advice.

Can you be self employed while employed by a company?

Which is the best way to go?

Thanks again, Neil

[demetris]

Yes, you can be both an employee and a self employed person (having your own business) at same time.

About what the best way to go is from a tax point of view, I can only say that, depending on your total income and the profit of your company, you might happily in a position of not having to pay any more taxes, either personally or the company.

Of course, not being burdened with taxes would come in handy in the first year of trading, when you expect to incur some set up costs.

That's in opposition to being self-employed, where you are prsonally liable to income tax on any profits your business makes at your marginal (top) rate of tax.

Demetris Savva BA FCCA
http://www.tax-accounting-london.info
constantinesavva@accamail.com