PAYE Worker with own start-up business part-time

[sman]

Hi,

I have a query on setting up my own business part-time. I am currently working full time in a PAYE job earning just below the higher rate tax bracket. I am considering setting up my own business part-time (evenings and weekends) on the advice of the local enterprise board who I may be pointing some work in my direction. The guy i spoke to reckons i will get more work if i am registered as people like to work with registered companies. I have searched online to find out what the story is with my tax but cant find anything for when someone is both. The guy in the enterprise board will look after registering my company etc. but I do not know what I will end up paying in tax. Does any income earned from the business get added to my PAYE earnings? - (so I would be paying at 40%) or is this counted seperately at a different business rate?

Say if i was to earn about 10,000 this year from my business, added to my 36,000 from PAYE job. Approx what would i owe on money taken in from the business?

 

[Domo]

If you act as a sole trader (not a Ltd company) your taxable profit is added to your income to calculate your tax.

If you set up a company, you will have to operate PAYE on any funds you draw from the company as salary.

You really need to speak to a tax advisor.

 

[mathepac]

As Domo pointed out above you need tax advice. Maybe the enterprise board could suggest someone you can use.

The first thing you will need to do is to ensure your current PAYE tax affairs are in order. I have no doubt that you may get work as promised, but IME in order to get paid you will need to present a current Tax Clearance Certificate.