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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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I am a full time manager in retail but want to work

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Good morning. I am a full time manager in retail but want to work additional amount for my brothers company- how do I go about this? Had various amounts of advice like set up as a sole trader/set up utr number but I'm a bit lost!!
Assistant: Have you talked to a tax professional about this?
Customer: Not yet!
Assistant: Anything else you want the Accountant to know before I connect you?
Customer: No that's all I think

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Thank you for your question.

What is the nature of your second job?

If you are going to work regular hours and your work is being supervised by someone in the company etc then you are deemed an employee and not self employed.

If you have income taxed at source then not every taxpayer has to file a tax return. You need to register for self assessment if you need to file a tax return.

Your earnings would be subject to PAYE deductions at source.

My aim is togive you a professional service. I hope this is helpful and answers yourquestion.

Please remember to rate my service by selecting the 5 stars at the top of the screen before you eave JA today. If you need more assistance, please use the reply box below and let me know. It has been my pleasure to assist you with your question.

 

Customer: replied 13 days ago.
Thank you for your help, appreciate
it. Its more being a partner in the business but getting a small % of the profits. This may only be for giving advice but not for doing regular working hours. For example if the company takes £10k in December I will receive £500 of that- how do I declare this?

Thank you for your reply.

You should have become a consultant rather than a partner if your share is so small.

Having said that, you would report £500 as your share of the profit on the partnership tax return and show this income when completing your personal tax return.

I hope this is helpful and answers your question.

If there are no more issues, I will appreciate if you would kindly rate my service by selecting the 5 stars at the top of the screen before you leave, to ensure I get credited for it by Just Answer today.

Customer: replied 13 days ago.
I have not actually started yet and still scope to become a consultant if that's the best course of action as that sounds closest to what I am. How would I go about doing this? Definitely 5 star info ��

Thank you for your reply.

If the partnership has not started to trade, then I suggest you register for self assessment in the tax year when you earn some money from this venture.

You could register for self assessment as a sole trader if there is a prospect for regular income outside your full time job.

You could claim trading allowance of £1,000 against this income. More information on this here

https://www.litrg.org.uk/tax-guides/self-employment/what-trading-allowance

I hope this is helpful and answers your question.

If there are no more issues, I will appreciate if you would kindly rate my service by selecting the 5 stars at the top of the screen before you leave, to ensure I get credited for it by Just Answer today.

 

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Best wishes.