Business Not As Primary Income Source

[Tenacious Doug]

I am sure this will be the first of many posts I will make as I investigate my business further.

I am looking at setting up a small business importing specialist mountain bike parts and selling them mail order in the UK. The problem with the industry is that no established companies will touch you without experience, so I will need to start off by cutting my teeth dealing small quantities on a relatively informal manner with small manufacturers. As a result of this I will initially only be doing this as a business on the side of my studies (until graduation) and my day job (after summer), working on a small time manageable scale.

How does this affect my income tax situation at my primary employer? Should I inform the accountants of my other business interests? How do I then go about with the paying of any tax on the money made from my own business, totally seperate from the income tax on my salary?

[Netcomm UK]

Speak to your local tax office and ask them about going self employed.

If you register as self employed, tell them you will also be in full time employment. What they will do is take £2 a week from your bank account to cover your NIC contributions. You will have to pay income tax on any wages, but beware, as you have a full time job already, you're not going to get the normal allowance everyone gets, you'll start paying income tax straight away IYSWIMAITYD.