Can GTV holder in full-time employment become a sole trader & hire another person to work concurrently on business idea?
Posted: Thu Aug 26, 2021 11:30 am
I am a GTV holder endorsed by the Royal Academy of Engineering. My BRP expires on 17 May 2023. I am currently in full-time employment as a researcher at a UK University.
In my spare time (evenings, weekends), I have been working on a software-based business idea (a product + service) which is still in its infancy. The innovation/spin-out office at my University has evaluated it and agree that it has got potential. However, they think that my business idea is currently too early to commercialise it or be put forward for attracting further funding. They have suggested a number of meaningful changes to the product/changes. They encourage me to improve it further for say 8-12 months and come back to them when more pieces are in place, and with a stronger case with all polishes.
So far, I did not have to register as a sole trader with the HMRC because it is not making any revenue, and it is literally a personal project (but bigger than a hobby) on my personal laptop. Now, for these product improvements, apart from my work, I intend to hire a student at my University at above the national minimum hourly rate for 12 hours/week for 6 months, and pay them from my personal savings. Because the University is involved, they advised me to make the arrangement formal, and set up PAYE and NI for the student etc.
As a GTV holder, can I legally do this, i.e. register as a sole trader, act as a PAYE employer, and employ another person? Not that my business will be non-revenue generating for at least 12 months (i.e. my income from this extra venture will be exactly GBP 0 this tax year.
In my spare time (evenings, weekends), I have been working on a software-based business idea (a product + service) which is still in its infancy. The innovation/spin-out office at my University has evaluated it and agree that it has got potential. However, they think that my business idea is currently too early to commercialise it or be put forward for attracting further funding. They have suggested a number of meaningful changes to the product/changes. They encourage me to improve it further for say 8-12 months and come back to them when more pieces are in place, and with a stronger case with all polishes.
So far, I did not have to register as a sole trader with the HMRC because it is not making any revenue, and it is literally a personal project (but bigger than a hobby) on my personal laptop. Now, for these product improvements, apart from my work, I intend to hire a student at my University at above the national minimum hourly rate for 12 hours/week for 6 months, and pay them from my personal savings. Because the University is involved, they advised me to make the arrangement formal, and set up PAYE and NI for the student etc.
As a GTV holder, can I legally do this, i.e. register as a sole trader, act as a PAYE employer, and employ another person? Not that my business will be non-revenue generating for at least 12 months (i.e. my income from this extra venture will be exactly GBP 0 this tax year.