PAYE + Declaring additional income

[penrodyn]

Hi,

I am employed within the ICT section of an organisation on salary of £30K - Tax, NI and Pension are paid through PAYE.

To raise some additional income I am planning on setting up a local PC repair business with a website etc.

I was wondering what is the easiest way of me declaring any additional income (unlikely to be £1K or above) without affecting my PAYE contributions / work tax code.

Do I simply complete a retrospective self assessment every year and include details of my day job and tax paid through PAYE along with the additional income? I was thinking of seeing how much income I actually make before making anything official (incase there is no income!) but a colleague insists that I must register as a sole trader beforehand. Another colleague suggests I should setup as a limited company.

My motivation for this is to save up for a shed and to pursue hobbies so I'm not looking to make my first million, just want to make sure I'm doing everything "by the book"

Cheers
Lee

[nikkisizer]

Hi Lee,

You should register for self assessment as self employed by 5 October in your business’s second tax year.

For example, if you start working as a sole trader during the current tax year (2015/16) you should register before 5 October 2016.

Happy to help if required so if you need any further assistance please do not hesitate to contact me.

[Peter D]

https://www.gov.uk/set-up-sole-trader/register
Is a good place to start.

Regards Peter