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Diacritical Quark
Posts: 175
Joined: Tue Jan 28, 2020 10:55 pm

Hello, I'm aware there are multiple threads on this and I've pieced together a few parts of the puzzle but unfortunately it's a very specific subject to each individual and so I'm just looking for a bit of help.

Long story short, I'm now making more money than I do in my current job, I work from home and at a middle management level which means for the past six months I've really not done a lot other than trade full time every day. I have however been doing this for the best part of ten years but never had much time to fully focus my endeavours. I'm pretty much on the brink of paying the first level of PC.

Anyway to the topic, I'm 40, no kids, no dependents (other than a dog) and a fairly low mortgage. The job I'm about to quit isn't anything special, middle manager for a tech firm so if it all goes wrong getting a new job won't be hard.

I'm worried about a gap on my employment record so I've decided to register as self employed, set up a basic website and post my python scripts linked to github there so I can at least say "I was self employed for x years" rather than "I was gambling on Betfair" if I need a job interview anytime soon.

Based on the above I was planning on declaring £0 on a self assement form each year and paying voluntary NI contributions at rate 1 (around £3 a week) IIRC.

Have I missed anything obvious, am I over complicating things with the self employed thing, should I just pay voluntary NI and forget that?

On to mortgage and banks, my mortgage is until I'm 65, I've just gone through a renewal and is fixed for the next 5 years, all of my Betfair proceeds have been withdrawn to the same current account I've had for 20 years, the same bank my mortgage is with, should I setup a new bank account and withdraw funds into there, I'm slightly worried about my bank finding out and withdrawing my mortgage or at least not allowing me to renew in five years time.

Any advice much appreciated.
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jamesedwards
Posts: 2234
Joined: Wed Nov 21, 2018 6:16 pm

Diacritical Quark wrote:
Wed Apr 21, 2021 5:37 pm
Hello, I'm aware there are multiple threads on this and I've pieced together a few parts of the puzzle but unfortunately it's a very specific subject to each individual and so I'm just looking for a bit of help.

Long story short, I'm now making more money than I do in my current job, I work from home and at a middle management level which means for the past six months I've really not done a lot other than trade full time every day. I have however been doing this for the best part of ten years but never had much time to fully focus my endeavours. I'm pretty much on the brink of paying the first level of PC.

Anyway to the topic, I'm 40, no kids, no dependents (other than a dog) and a fairly low mortgage. The job I'm about to quit isn't anything special, middle manager for a tech firm so if it all goes wrong getting a new job won't be hard.

I'm worried about a gap on my employment record so I've decided to register as self employed, set up a basic website and post my python scripts linked to github there so I can at least say "I was self employed for x years" rather than "I was gambling on Betfair" if I need a job interview anytime soon.

Based on the above I was planning on declaring £0 on a self assement form each year and paying voluntary NI contributions at rate 1 (around £3 a week) IIRC.

Have I missed anything obvious, am I over complicating things with the self employed thing, should I just pay voluntary NI and forget that?

On to mortgage and banks, my mortgage is until I'm 65, I've just gone through a renewal and is fixed for the next 5 years, all of my Betfair proceeds have been withdrawn to the same current account I've had for 20 years, the same bank my mortgage is with, should I setup a new bank account and withdraw funds into there, I'm slightly worried about my bank finding out and withdrawing my mortgage or at least not allowing me to renew in five years time.

Any advice much appreciated.
I complete a Self Assessment tax return every year in order to pay my voluntary NI contributions (only £158.60 for 20/21 - Bargain!). To make this process as smooth as possible I registered myself as self-employed and run an incredibly small reseller business (just selling a few bits on ebay). This way I generate a traditional turnover and annual P&L to include on my tax return. Don't know if this was ever really necessary but it makes me feel better. :D

Make sure you understand the impact PC will have on your profitability. Are you prepared for the impact of higher rate PC of (40-60%) when you get there?

You may wish to consider holding off quitting your day job until the impacts to Exchange trading from the impending Government online gambling review are understood.

I am very lucky to be mortgage free so cannot advise, but you are right to consider this. Hopefully there are others who can offer their experiences?
Emmson
Posts: 3363
Joined: Mon Feb 29, 2016 6:47 pm

In general I don't think enough people make enough use of the search engine on this forum, just type in a few phrases and often valuable insights abound.

I use it often!
Diacritical Quark
Posts: 175
Joined: Tue Jan 28, 2020 10:55 pm

[/quote]

I complete a Self Assessment tax return every year in order to pay my voluntary NI contributions (only £158.60 for 20/21 - Bargain!). To make this process as smooth as possible I registered myself as self-employed and run an incredibly small reseller business (just selling a few bits on ebay). This way I generate a traditional turnover and annual P&L to include on my tax return. Don't know if this was ever really necessary but it makes me feel better. :D

Make sure you understand the impact PC will have on your profitability. Are you prepared for the impact of higher rate PC of (40-60%) when you get there?

You may wish to consider holding off quitting your day job until the impacts to Exchange trading from the impending Government online gambling review are understood.

I am very lucky to be mortgage free so cannot advise, but you are right to consider this. Hopefully there are others who can offer their experiences?
[/quote]

Cheers James
Diacritical Quark
Posts: 175
Joined: Tue Jan 28, 2020 10:55 pm

Emmson wrote:
Wed Apr 21, 2021 7:02 pm
In general I don't think enough people make enough use of the search engine on this forum, just type in a few phrases and often valuable insights abound.

I use it often!
Brilliant, thanks for your words of wisdom, despite clearly saying I'd searched the forum and needed a unique perspective you still decided to post a sarky comment. I was hesitant at commenting on this in the first place, you've just confirmed my reticence.

Last time I'll be posting here. Have a good 'un.
Emmson
Posts: 3363
Joined: Mon Feb 29, 2016 6:47 pm

Diacritical Quark wrote:
Wed Apr 21, 2021 7:13 pm
Emmson wrote:
Wed Apr 21, 2021 7:02 pm
In general I don't think enough people make enough use of the search engine on this forum, just type in a few phrases and often valuable insights abound.

I use it often!
Brilliant, thanks for your words of wisdom, despite clearly saying I'd searched the forum and needed a unique perspective you still decided to post a sarky comment. I was hesitant at commenting on this in the first place, you've just confirmed my reticence.

Last time I'll be posting here. Have a good 'un.
Wasn't snarky at all and it wasn't specifically directed at you which is why I used the word *in general* Ultra sensitive, Good Bye!
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Kai
Posts: 6096
Joined: Tue Jan 20, 2015 12:21 pm

Eh, only a matter of time before one of these forum threads somehow ends up in fisticuffs.

Well done to OP and good luck I guess 👍
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jimibt
Posts: 3641
Joined: Mon Nov 30, 2015 6:42 pm
Location: Narnia

Kai wrote:
Wed Apr 21, 2021 7:44 pm
Eh, only a matter of time before one of these forum threads ends up in fisticuffs.

Well done to OP and good luck 👍
you literally beat me to it by 2 mins. same thought occurred to me. seems to be another beef brewing on the super league thread also - must be a TOM thang!.
LinusP
Posts: 1871
Joined: Mon Jul 02, 2012 10:45 pm

Mortgage will be a problem, they won’t check your income till you come to renew or get a new one unless you don’t and move on to the fixed rate. A mortgage broker becomes pretty essential at this point but even then without proof of some sort of income the banks won’t lend so you need a plan.
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Crazyskier
Posts: 1157
Joined: Sat Feb 06, 2016 6:36 pm

1) Open a business account
2) Withdraw all winnings to Paypal, never, ever to a debit card! Your bank will likely flag you immediately
3) Withdraw Paypal into your business account once per month
4) Transfer from said business account to current account on the last working day of each month (or 28th). Try to keep the amounts very similar (£2-4k ish) works very well
5) When you renew your mortgage or have any kind of credit check, simply state your employment as the name from which you pay yourself monthly, with full time employed being superior to self employed for insurance and risk assessment purposes

I've been doing this myself for many years, though I do genuinely have a small web and Google ads firm that accepts Paypal and transfers regularly into the business account from which I pay myself at the end of each month

Good luck!

CS
User avatar
jamesedwards
Posts: 2234
Joined: Wed Nov 21, 2018 6:16 pm

Crazyskier wrote:
Wed Apr 21, 2021 9:29 pm
1) Open a business account
2) Withdraw all winnings to Paypal, never, ever to a debit card! Your bank will likely flag you immediately
3) Withdraw Paypal into your business account once per month
4) Transfer from said business account to current account on the last working day of each month (or 28th). Try to keep the amounts very similar (£2-4k ish) works very well
5) When you renew your mortgage or have any kind of credit check, simply state your employment as the name from which you pay yourself monthly, with full time employed being superior to self employed for insurance and risk assessment purposes

I've been doing this myself for many years, though I do genuinely have a small web and Google ads firm that accepts Paypal and transfers regularly into the business account from which I pay myself at the end of each month

Good luck!

CS
I like this idea. Is the business account just a sole trader self-named account or under a business name? I suppose there would be no point in doing this if you just end up with a business account with your name paying a "salary" into a current account with your same name? But then if it looks like a "salary" isn't there a risk that HMRC come a-knocking?
User avatar
Crazyskier
Posts: 1157
Joined: Sat Feb 06, 2016 6:36 pm

jamesedwards wrote:
Wed Apr 21, 2021 11:09 pm
Crazyskier wrote:
Wed Apr 21, 2021 9:29 pm
1) Open a business account
2) Withdraw all winnings to Paypal, never, ever to a debit card! Your bank will likely flag you immediately
3) Withdraw Paypal into your business account once per month
4) Transfer from said business account to current account on the last working day of each month (or 28th). Try to keep the amounts very similar (£2-4k ish) works very well
5) When you renew your mortgage or have any kind of credit check, simply state your employment as the name from which you pay yourself monthly, with full time employed being superior to self employed for insurance and risk assessment purposes

I've been doing this myself for many years, though I do genuinely have a small web and Google ads firm that accepts Paypal and transfers regularly into the business account from which I pay myself at the end of each month

Good luck!

CS
I like this idea. Is the business account just a sole trader self-named account or under a business name? I suppose there would be no point in doing this if you just end up with a business account with your name paying a "salary" into a current account with your same name? But then if it looks like a "salary" isn't there a risk that HMRC come a-knocking?
Any 'trading as' sole trader account is fine. Starling bank are fast and free and have no charges for BACS transfers. The important thing is that the name on the account is NOT your own name. IE 'XYZ Services' is how it appears on your personal account statement. No need for LTD company.

CS
User avatar
jamesedwards
Posts: 2234
Joined: Wed Nov 21, 2018 6:16 pm

Crazyskier wrote:
Thu Apr 22, 2021 11:31 am
jamesedwards wrote:
Wed Apr 21, 2021 11:09 pm
Crazyskier wrote:
Wed Apr 21, 2021 9:29 pm
1) Open a business account
2) Withdraw all winnings to Paypal, never, ever to a debit card! Your bank will likely flag you immediately
3) Withdraw Paypal into your business account once per month
4) Transfer from said business account to current account on the last working day of each month (or 28th). Try to keep the amounts very similar (£2-4k ish) works very well
5) When you renew your mortgage or have any kind of credit check, simply state your employment as the name from which you pay yourself monthly, with full time employed being superior to self employed for insurance and risk assessment purposes

I've been doing this myself for many years, though I do genuinely have a small web and Google ads firm that accepts Paypal and transfers regularly into the business account from which I pay myself at the end of each month

Good luck!

CS
I like this idea. Is the business account just a sole trader self-named account or under a business name? I suppose there would be no point in doing this if you just end up with a business account with your name paying a "salary" into a current account with your same name? But then if it looks like a "salary" isn't there a risk that HMRC come a-knocking?
Any 'trading as' sole trader account is fine. Starling bank are fast and free and have no charges for BACS transfers. The important thing is that the name on the account is NOT your own name. IE 'XYZ Services' is how it appears on your personal account statement. No need for LTD company.

CS
Thanks for the info. Might give this a go.
Trader Pat
Posts: 4327
Joined: Tue Oct 25, 2016 12:50 pm

Some very good advice there, shame the OP done a runner! :lol:
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