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Answers to your questions:
1) Two of the clients are unconnected to my current employer. The third would be my current employer, but the work would be much reduced from what I currently do.
2) The work is general administration, book-keeping etc. From home (I already work from home on a permanent basis). I have one room dedicated as an office.
3) I have my own laptop/printer/software.
4) Probably not as these 3 would be enough for the hours I want to work.
Hope this clarifies.
Hi Sam, many thanks - pretty much what I thought, but wanted to be sure that I had everything covered. Although book-keeping is part of my role, income tax is not and I am wary of getting it wrong with HMRC! I was on self-assessment some time ago, but not for a few years so I am registered and used to doing their marathon forms.
Just a couple of follow up points please. Is the exemption for Class 4 NI based on profits? So if the profit was say £10,000, the first £7956 would be exempt and only the balance charged at 9%?
If all my personal allowance is used up by the pension/annuity, presumably any other income will be taxed at 20%. Is that correct? If so, I can estimate my tax liability to put aside.
As you say, being self-employed will give me the flexibility to work when I want, allowing me time when I need it, so this is my preferred option. I just need to work out how much income I need on top of the pensions to manage.
Thanks for the help.