The end of last week was taken up with finding business advise and looking into how my tax will work.
I currently work one day a week PAYE (the English employment tax system) but will also be looking to find freelance work as a DJ and take on the odd piece of design work alongside running ‘The Diggers’.
After speaking to the Inland Revenue (the English tax authority) I was advised to become self-employed. This will mean that the tax on my earnings will be the same even though my income will be coming from different sources. When you have more than one job this can be a problem as you get taxed differently depending which is classed as your first job (which is generally the one you do the most hours at).
This means that the one day a week I do PAYE will become freelance. I will have to fill out a self-assessment every year, which you receive at the beginning of the tax year (April) and has to be returned by January.
You can find out all you need to know about tax from: www.hmrc.gov.uk/ and the relevant phone help lines associated with the different forms of tax.
I’ve also looked into business advise offered by both Business Link and The Hackney Enterprise Network.
Business Link is a government organisation that can help with all aspects of business support from writing a business plan to finding finance. They offer free advise which I was hoping for today but their representative never got back to me. I’m still waiting a week later.
The Hackney Enterprise Network is membership based organisation (£25 a year for your first year of trading £50 then on). They offer one-on-one business advise (I’ve already had a one hour session), grants and seminars. I’m signed up for ‘How to create professional financial projections’ and ‘How to structure a finance ready business proposal’. Fun stuff!
LC the office cat taken on the new office phone