UK Part Time Job and Sole Trader - Tax info needed.

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Jul 27, 2016
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Hello,
I am currently working a part-time job which pays just under the personal allowance threshold, so is not taxable. However I soon plan to become a Sole Trader and trade in my spare time. I expect my SoleTrader income to be higher than the personal allowance and thus will be taxable by law. How will my taxes be paid? Will I have to submit my income to HMRC every year for the income of my SoleTrader "business", and then be taxed on that income but not my part time job. Or will I have to submit my total earnings, including my part time job to HMRC and be taxed on my income as a whole. The reason I ask is that as far as I understand it at the moment, my employer will deduct taxes from my payslip every month, will my employee need to then know about my SoleTrader income or am I to handle it all on my end?

Any help you can give will be greatly appreciated.
 
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Sir whatever your income coming from business that you can show once a year if not acceding 1crore
 
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Billy, HMRC will not know about all your income unless you tell them, or claim Working Tax credits etc. The way it works is that you ask to be register for self-assessment. Then once per year by the 31st Jan following the close of the LAST tax year you must complete your self-assessment online. It is very easy to do and for your self-employed work you can claim expenses etc I keep a note of all my expenses using iclaimit, which is an iPhone App. You have to register for a userid and password(HMRC) and I would do that now so you have all the information you need.

See here

https://www.gov.uk/self-assessment-tax-returns/overview
 
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