I am not sure of the point when just earning a bit on the side and declaring as personal income becomes a self employment business which has different methods for tax. Self employed businesses are supposed to register as such within a certain period.
Not used the route myelf but if you use your own computers and other capital equipment for work you can still claim for usage on tax return, there's a personal capital allowances page somewhere on IR website. No reason you could not sell to company later at reasonable price.
PS It only takes a few days to set up a company. Bank account takes a bit longer.
-
Handling Income & Expenditure before foriming a company?
I have been doing some freelance development online for a while, outside of my day-job. I am now setting up to do this professionally. Obviously it will take some time to get everything sorted out, but in the mean time I have money coming in, and I also wish to buy things to help me work from home more comfortably.
Are there any issues with starting out not as a company, but just paying tax normally, and then transitioning to a company setup? It would be neater if I got the company done first, but that's just not possible.
Thankyou.
Leave a comment: