Starting a business/self-employed status
Jun 25th 2011, 9:51 am
#1
Ping-ponger
Thread Starter
Joined: Jul 2002
Location: Dreich Alba
Posts: 12,010
Starting a business/self-employed status
Can any of you self-employed folks help me to answer a few questions? I do some consultancy work and book author work, and currently do it mostly through my current employer (a university - they write up the contract and essentially sub-contract the work to me, but I do it all outside of my work time). To be clear, I bring the work in, the university does not bring the work to me.
However, they recently moved the goalposts and now skim 50% of my contrract straight off the top - even when the contract includes material costs. I don't even get the money in my own bank account - I use it to pay for work-related travel (conferences, etc.) so that I don't have to pay for that sort of thing out of my own pocket (yes, university professors actually spend their own money to do their job!).
I'm so sick and tired of it, I have decided to just do the work independently of my employer.
The sort of work I'm talking of is mainly independent research (setting up and conducting research projects, analysing the data and writing up a report). I also give talks to public groups and local authority groups. In future, I'd also like to set up a Web site to bring in data analysis work (for companies, local authority, maybe also helping postgrad students with thesis data analysis or tutoring).
In any given year, the earnings could be next to nothing, up to a few thousand. I would also pay sub-contractors to do initial data processing and other basic tasks (people I already know).
OK, here are the questions:
To do this separately from my main job, I believe I need to register as self-employed, is this correct (I looked on t'internet last night, and it looks like it) - does this mean the same as registering as a sole trader?
Do I have to, or is is best to, register as a business? I have a business name in mind that currently doesn't exist - I checked the online register of UK business names.
What are the main challenges, aside from doing a self-assessment tax return? It seems to be a relatively simple business model and I can hardly lose money as I have no overheads, only my own time and expertise.
I have some other Q's but will leave it at this for now and see what responses I get. Thanks for any help!
However, they recently moved the goalposts and now skim 50% of my contrract straight off the top - even when the contract includes material costs. I don't even get the money in my own bank account - I use it to pay for work-related travel (conferences, etc.) so that I don't have to pay for that sort of thing out of my own pocket (yes, university professors actually spend their own money to do their job!).
I'm so sick and tired of it, I have decided to just do the work independently of my employer.
The sort of work I'm talking of is mainly independent research (setting up and conducting research projects, analysing the data and writing up a report). I also give talks to public groups and local authority groups. In future, I'd also like to set up a Web site to bring in data analysis work (for companies, local authority, maybe also helping postgrad students with thesis data analysis or tutoring).
In any given year, the earnings could be next to nothing, up to a few thousand. I would also pay sub-contractors to do initial data processing and other basic tasks (people I already know).
OK, here are the questions:
To do this separately from my main job, I believe I need to register as self-employed, is this correct (I looked on t'internet last night, and it looks like it) - does this mean the same as registering as a sole trader?
Do I have to, or is is best to, register as a business? I have a business name in mind that currently doesn't exist - I checked the online register of UK business names.
What are the main challenges, aside from doing a self-assessment tax return? It seems to be a relatively simple business model and I can hardly lose money as I have no overheads, only my own time and expertise.
I have some other Q's but will leave it at this for now and see what responses I get. Thanks for any help!
Jun 25th 2011, 4:38 pm
#2
BE Forum Addict
Joined: Jul 2008
Posts: 1,477
Re: Starting a business/self-employed status
Dunroving, I don't blame you for looking at this avenue.Can't offer any advice. 50% off the top right away is bloody ridiculous. I know you will be successful and sure you will get the advice you are seeking..good luck..
Jun 25th 2011, 10:05 pm
#3
Joined: Sep 2008
Posts: 12,830
Re: Starting a business/self-employed status
Can any of you self-employed folks help me to answer a few questions? I do some consultancy work and book author work, and currently do it mostly through my current employer (a university - they write up the contract and essentially sub-contract the work to me, but I do it all outside of my work time). To be clear, I bring the work in, the university does not bring the work to me.
However, they recently moved the goalposts and now skim 50% of my contrract straight off the top - even when the contract includes material costs. I don't even get the money in my own bank account - I use it to pay for work-related travel (conferences, etc.) so that I don't have to pay for that sort of thing out of my own pocket (yes, university professors actually spend their own money to do their job!).
I'm so sick and tired of it, I have decided to just do the work independently of my employer.
The sort of work I'm talking of is mainly independent research (setting up and conducting research projects, analysing the data and writing up a report). I also give talks to public groups and local authority groups. In future, I'd also like to set up a Web site to bring in data analysis work (for companies, local authority, maybe also helping postgrad students with thesis data analysis or tutoring).
In any given year, the earnings could be next to nothing, up to a few thousand. I would also pay sub-contractors to do initial data processing and other basic tasks (people I already know).
OK, here are the questions:
To do this separately from my main job, I believe I need to register as self-employed, is this correct (I looked on t'internet last night, and it looks like it) - does this mean the same as registering as a sole trader?
Do I have to, or is is best to, register as a business? I have a business name in mind that currently doesn't exist - I checked the online register of UK business names.
What are the main challenges, aside from doing a self-assessment tax return? It seems to be a relatively simple business model and I can hardly lose money as I have no overheads, only my own time and expertise.
I have some other Q's but will leave it at this for now and see what responses I get. Thanks for any help!
However, they recently moved the goalposts and now skim 50% of my contrract straight off the top - even when the contract includes material costs. I don't even get the money in my own bank account - I use it to pay for work-related travel (conferences, etc.) so that I don't have to pay for that sort of thing out of my own pocket (yes, university professors actually spend their own money to do their job!).
I'm so sick and tired of it, I have decided to just do the work independently of my employer.
The sort of work I'm talking of is mainly independent research (setting up and conducting research projects, analysing the data and writing up a report). I also give talks to public groups and local authority groups. In future, I'd also like to set up a Web site to bring in data analysis work (for companies, local authority, maybe also helping postgrad students with thesis data analysis or tutoring).
In any given year, the earnings could be next to nothing, up to a few thousand. I would also pay sub-contractors to do initial data processing and other basic tasks (people I already know).
OK, here are the questions:
To do this separately from my main job, I believe I need to register as self-employed, is this correct (I looked on t'internet last night, and it looks like it) - does this mean the same as registering as a sole trader?
Do I have to, or is is best to, register as a business? I have a business name in mind that currently doesn't exist - I checked the online register of UK business names.
What are the main challenges, aside from doing a self-assessment tax return? It seems to be a relatively simple business model and I can hardly lose money as I have no overheads, only my own time and expertise.
I have some other Q's but will leave it at this for now and see what responses I get. Thanks for any help!
In the UK you would need to pay self employed NIC (Class 3 I believe) as well as filing your own tax return. You just have to let the revenue know you are now self employed so they send you the forms.
Depending on what you do, you may also want to talk to an in insurance broker to find out if you need coverage.
Self employed tax returns are quite straightforward as far as form filling goes and you keep accurate records. You are also required to keep financial records for 7 years. You should also research or get advice as to what expenses are deductible and what's not, as you may miss out on tax saving opportunities.
