Starting up

hi,
I am thinking of starting up my own business in my spare time as I am in full time employment at the moment. The thing is I dont want my employer to know. Does any one know if HMRC will inform my current employer due to NIC status changes etc? Also does any one have any usefull tips for going alone?
I am thinking of starting up my own business in my spare time as I am in full time employment at the moment. The thing is I dont want my employer to know. Does any one know if HMRC will inform my current employer due to NIC status changes etc? Also does any one have any usefull tips for going alone?
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I also would advise checking you company policy and contract for details of other work as it could be a breach on contract and the last thing you want is to lose your job over some extra cash, i know when i spoke to my last employer, i had to fill out some forms (that was their policy) but they were fine with it.
HMRC will not tell your employer anything and your self employment will usually not affect your tax code. There are no NIC status changes.
Assuming you're using up your personal allowance in your day job (likely) you will pay 20% tax on all self employed profits up to higher rate and then 40% above that. You will pay Class 2 NI of £2.40 a week (irrespective of the fact you pay Class 1 through your job unless you are eligible for and apply for a small earnings exception) and Class 4 NI on profits about £5715 per annum.
I would definitely check your employment contract though - especially if you are wanting to be s/emp in the same industry, many employers will include a non-compete clause. Some of these are unenforceable (or so I keep being told) but it's definitely woth checking out.
Assuming there is no non-compete clause then there's no reason for your employer to ever know, if you so wish.
Also if you're just starting, you're unlikely to have profits straightaway so your tax code won't be affected until the following tax year at the earliest.
I'm doing this too -- good luck!