Own company while working.

If I was to set up my own company in a non-related business to what I currently work in, while keeping my current job, how would that work for tax.

I currently pay tax at the higher rate but as I work shift was thinking of starting a little business on the days off.

Would I pay tax at the high rate on any earnings from the business??

Mr.Wonder said:

If I was to set up my own company in a non-related business to what I currently work in, while keeping my current job, how would that work for tax. I currently pay tax at the higher rate but as I work shift was thinking of starting a little business on the days off. Would I pay tax at the high rate on any earnings from the business??

Click to expand...

Unless you are talking about settings up a LTD every penny the business makes will be taxed at 42%....

If its a LTD its a different story....

Hi Mr W,

Im moving this post from Careers, Employment/Unemployment, Further Education/Training to

aj

Would it be different if I was not already working or is it a case that companies pay 42% regardless??

How would it be different if it was a LTD company? Is it more expensive to set up as a LTD?

Unless you are talking about settings up a LTD every penny the business makes will be taxed at 42%....

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Less allowable expenses

Apart from being able to claim motor expenses at the civil servants rate through a limited company, what are the advantages/costs in setting up a LTD company for a small business. The regulations/deadlines under the companies Acts are fairly strict - companies can be struck off etc.

Anything you take out of the company will be taxed at 42% through PAYE