If you are running your own business on the side and still employed, there are three things you should be aware of.
There is no legal obligation prohibiting you from running your own business but you may want to check your existing of employment to make sure there’s nothing in it that prevents you from taking on a second working life. I have come across some contracts that state that staff are required to tell their employers or they could rule out additional jobs where there could be a conflict of interest. In my experienced opinion, its better to be safe than sorry and have a quick check. You don’t want to be in breach of contract and risk being dismissed.
When you commence business activities you should register as self-employed with HMRC within 3 months. This will not affect the status of your existing employment, which will continue to be taxed via PAYE but you will be required to start paying Class 2 National Insurance contributions, currently at a rate of £2.80 per week (2015/16).
Working Time Directive:
If an employer knows or suspects that one of its employees has another job, it should make reasonable enquiries of the employee to ascertain how many hours a week in total he or she is working. If, following such enquiries, it transpires that the employee is working more than an average of 48 hours a week in total, the employer should, in order to comply with the Working Time Regulations 1998, ask the employee whether he or she wishes to sign an opt-out agreement. This allows you the liberty to work as many hours as you like without a 17 week reference period.
Like anything in life, there are always exceptions to the rules. Feel free to get in contact with me, should you need further information or clarity