Self employed consultants - can you help?

You will need a separate business account with your bank for this, otherwise it will be difficult to sort out or prove to HMRC what is what. I suggest you engage an accountant at some stage, at least at the start. His fees will be tax-deductible, and it is likely he will save you more than he charges.

When you have self-employment, you have to register with HMRC. That has to be done at the start if you don't want to incur financial penalties. Look at http://www.hmrc.gov.uk/ , and go into self-assessment. You will get the basic annual Tax Return, which is issued 6th April each year, and you will need both an employed and self-employed page to go with it. You account for all your income on the form, credit is given for tax already deducted. You then get a statement telling you how much tax is left to pay, or you can calculate it yourself, and submit on form.

I am doing this. First off make a list of questions for your "tax consultant (accountant)" Including what I recommend.

You need to incorporate, I would do an LLC but if you are a PE you may need a PC (profession Corp).

You need business cards, a simple web-site, some brochures (all recommended you do not have to do this) this helps people see what you can do and the services you provide.

Get a off the shelf accounting system (I use Quickbook) it took be 10 weekends to learn it on my own, I am not an expert at it but can do all my bookkeeping and invoicing in one spot - another option is to hire a PT bookkeeper.

Once you are a Corp, you file taxes annually, if you take a salary from your business then you need to pay payroll tax, I use a payroll firm for this and any accountant will do it. For 1 person firm about $30/month, this for me is a great investment, because if your payroll tax is not in on time the fines are more then my pay.

You provide a service so you have no sales tax.

Some advise for marketing, even the big firms that you feel you can not compete with, they also need your services, they get overloaded and have missed deadlines and need freelance people like you and me, I never view them as competitors but clients,

Also have contract agreements, they should be signed before you start any work, I learned this the hard way, contracts love to stiff you and with no written contact it is tough to collect.

The too hardest things in this type of work is:

1-getting the work

2-getting paid

Everything else can get done.

Best of Luck

It's not the tax office that you need to speak to - it's an Accountant. He'll give you sound advice about all aspects of the business and will save you more than his fees cost. He'll tell you exactly what you can allow against tax and he'll also show you the simplest way to keep your books so that you keep on top of things.

Being employed at the same time as being self-employed isn't a problem. Again, an Accountant will explain the tax situation and make sure that your tax codes are correct.

I am a self employed surveyor. What you are proposing is not difficult.

You can start on your own in a small way, and declare your fee income annually. You will need the services of a good accountant. Your self employed income and your employment income will be added together for the purpose of tax.

You will need professional indemnity insurance.

You must ensure that your private clients do not conflict with your employers' clients. An employer may expect you to bring new clients into his practice.

Expenses are quite straightforward. Collect and record all invoices.