Another self employed question..

theshamu

Hi guys,

Im currently employed full time but have the bug to set up an on-line business. Big demand for what I'm looking into doing and also a fair bit of competition but competition doesn't scare me as my products will be better and more affordable.

I have a .com name and already working on the site. (Im a graphic designer)
I'm concerned that if I start trading as a sole trader my current employer will find out, now I don't plan on taking a salary from the business until it's earning enough to pay myself a steady wage.

Basically what I'm asking is would my employer notice any changes to my prsi, tax etc when my business starts trading?

I have thought about this for a few years now and I think I have the skills to get this off the ground and turning a good profit. Have great ideas to drum up business.

Any advice much appreciated..

Cheers.

Chet Zar

theshamu wrote: »

Hi guys,

Im currently employed full time but have the bug to set up an on-line business. Big demand for what I'm looking into doing and also a fair bit of competition but competition doesn't scare me as my products will be better and more affordable.

I have a .com name and already working on the site. (Im a graphic designer)
I'm concerned that if I start trading as a sole trader my current employer will find out, now I don't plan on taking a salary from the business until it's earning enough to pay myself a steady wage.

Basically what I'm asking is would my employer notice any changes to my prsi, tax etc when my business starts trading?

I have thought about this for a few years now and I think I have the skills to get this off the ground and turning a good profit. Have great ideas to drum up business.

Any advice much appreciated..

Cheers.

Fair play...and glad to hear I am not the only one with a serious bug for setting up his own online business!!

This q has been asked before and the reply has been that your employer won't know anything about it. Besides, as long as it isn't interfering with or competing with your company or your job then it's your own business anyway!

rolion

Hi,
I thought you have to register with Tax Office,i think TR1...
then ... for prsi or paye or tax credits...you and the employer will receive a letter confirming the changes !!

i reckon is better to be open and bring on the table your options with current employer ! as long is no direct competition or same market,no problems...

Kinetic^

theshamu wrote: »

I'm concerned that if I start trading as a sole trader my current employer will find out, now I don't plan on taking a salary from the business until it's earning enough to pay myself a steady wage.

If you're a sole trader, any net profit after adjustment is your salary at the end of the calendar year*. Paying yourself a salary would only be relevant if you were to form a limited company.


Not as straight forward as that but for simplicity terms I'm using calendar year.

theshamu wrote: »

Basically what I'm asking is would my employer notice any changes to my prsi, tax etc when my business starts trading?

You don't really tbh. I would however check that your employment contract, if you have one, doesn't say anything along the lines of not allowing you to have a second job etc.

AndyJB

theshamu wrote: »

Hi guys,

Im currently employed full time but have the bug to set up an on-line business. Big demand for what I'm looking into doing and also a fair bit of competition but competition doesn't scare me as my products will be better and more affordable.

I have a .com name and already working on the site. (Im a graphic designer)
I'm concerned that if I start trading as a sole trader my current employer will find out, now I don't plan on taking a salary from the business until it's earning enough to pay myself a steady wage.

Basically what I'm asking is would my employer notice any changes to my prsi, tax etc when my business starts trading?

I have thought about this for a few years now and I think I have the skills to get this off the ground and turning a good profit. Have great ideas to drum up business.

Any advice much appreciated..

Cheers.

Good for you!

As previous poster mentioned check what your employment contract states on the subject. As long as you're not competing with them in anyway or using/taking their customers all should be fine.

On the tax front it's pretty straight forward. Register with the Revenue Online Service as self employed using the Register for ROS option. You'll pay tax on your self employed earnings a year in arrears eg Taxes due on self employed earnings in 2011 will be payable in October/November 2012. You're employer will not know you're tax affairs outside of your payslips / annual P60 so there's no need to worry on that front.

Are you planning on going down the VAT route or not? Again with Revenue on line that's easy also. There are pros and cons for a start up whether to register or not. If you're paying a lot of supplier invoices that have VAT included it maybe a good idea to register, the flipside is you'll have to add VAT onto your sales/customers invoices.

There are turnover thresholds after which you will have to be VAT registered, the Revenue site has all the info.

It would be a good idea to have a chat with an accountant about your plans, they'll guide you on setting up accounting/vat templates to use.

The whole accounting/VAT thing may seem daunting at first but as long as you keep your records up to date it's suprisingly straight forward.

Open a seperate bank account to handle your self employed cash flows, this will help remove a lot of confusion in the long run. Most banks will give free banking to new business accounts, do shop around.

One good idea I picked up along my many and varied self employed travels, if you have concerns about VAT / Tax payments you'll have to make at year end you can always drip feed them any spare cash, big or small, you have during the year on account

Best of luck!
AB

theshamu

Sorry about the delay in replying.

Firstly thanks for all the support and advice. I'm seriously thinking about having a chat with the boss and telling him my plans, just be afraid that he would not be happy and him thinking that I would be focusing on my own business rather than his..

Either way I'm going ahead with it in the coming months, will get some professional advice first too on which road to go down, sole trader ltd. company etc... Altho it will probably be a ltd company as I will need to buy stock from time to time.

Thanks again for the advice, much appreciated.

Watch this space :cool:

ssbob

theshamu wrote: »

Either way I'm going ahead with it in the coming months, will get some professional advice first too on which road to go down, sole trader ltd. company etc... Altho it will probably be a ltd company as I will need to buy stock from time to time.

You don't need a ltd company to buy stock, you can be a sole trader. Get some professional advice.