Read the local rules before the first invoice
Blue levers are locks. They don't move trains; they make sure nothing moves until the route is safe. This one is about paperwork.
Why this lever sits before the trial
It's tempting to try the work first and sort out the paperwork once there's something to declare. The trouble is that some rules apply from the very first payment: registration, record keeping, or limits on what you can do from home. Reading them first costs an evening. Finding out later can cost a lot more.
Where to look
Go to the official tax authority website for the country where you live and pay tax. Government sites usually end in a recognisable official domain. Be wary of pages that summarise "the rules" for many countries at once, and of anyone who charges to explain information the government publishes for free.
The questions to look up
- Do I need to register before receiving payment for occasional work, or only above a certain amount?
- Is there an allowance or threshold for small extra income, and does it apply to the kind of work I'm planning?
- What records do I need to keep, and for how long?
- When and how is this income declared, and is it included in my yearly return?
- Does working from home need any permission from my landlord, building or local council?
Write the answers in the margin of your register, with the date you read them and the page address. Rules change, and knowing when you last checked is part of the record.
Your employment contract
While you're reading rules, read your own contract too. Some contracts ask employees to declare outside work, or rule out work for competitors. It's far easier to ask your employer a plain question now than to explain later.
If an answer isn't clear, ask the tax authority directly. Many offer phone lines or online chat, and their answer is the one that counts.
When the lever is set
Lever 4 is set when you know what you'd need to do on the day the first payment arrives. You don't need to have done all of it yet, but you need to know what it is. Only then, together with lever 3, does lever 5 unlock.