Self Employed & Part Time,How do they mix?

vernall · 3 April 2005 at 3:05PM

I am currently self employed earning approx £15,000pa,my accountant deals with all my tax and so on....................now if i was to take a part time job,im presuming all my allowances are used on the self employed job so i would be paying basic rate for the part time job(which is 22% i gather,correct me if im wrong)which they would take out of my pay.
Now at the end of the tax year(not this one,next) would my accountant need to get involved in anything to do with the part time job? i.e. do i need to give him details of the part time job like earnings and so on and does he even need to know?
or
Are the both kept seperately i.e. accountant deals with self employment and company im working for deal with part time and the 2 dont mix?

Thanks for any help/advice

gustav · 3 April 2005 at 4:49PM

Not sure why you need an accountant if you're only earning 15k pa.
Only good reason for this would be if your claiming lots of depreciation on assets etc, or if you're personal affairs were really messy.
The TaxReturn form isn't rocket science.

No reason why you shouldn't pay tax on your earnings from p/t job. However, when your accountant (or you) make your TaxReturn to IR, you should declare your earnings and the tax paid. You shouldn't even attempt to keep quiet about it. Tax man will get suspicious and turn you over; the last thing you want. Anyway, possible that any tax due on your self employment will be partially paid by your deductions from p/t pay. Having the tax deducted from your p/t pay can actually be a good idea if you dont have the self-discipline to actually save the tax that HMIR actually want from you.

Not actually a good idea to start thinking in terms of different tax rates for different jobs. You'll only get confused. From the sound of it you'll only pay basic and standard rates only on your income.
Oh yeah - Sack the accountant!

vernall · 3 April 2005 at 7:09PM

"Sack the accountant"

actually i have been thinking along the same lines.................i was 16 when i became self employed , never knew a thing and was then earning anything from 25-33K a year and it was just easier to let him do it and iv never stopped...............changes over the years means we are down to roughly 15K................my accounts arent complicated at all id say.........i do a very skilled job for 1 employer,at the end of the month i put in an invoice and get a cheque a week later,as soon as the cheque clears i write a cheque for 25% of that months earnings and pay that into a savings account to cover tax and national insurance(and accountants fees-roughly £200 a year)

the form just looks really daunting(sp) when he sends it back for me to sign,but i believe if i get stuck i can take the lot to my nearest IR office cant i?

would a friendly letter to my accountants office just after 5 april saying that i no longer required his services and thank you very much be alright?

any other advice would be most welcome

thanks

dunstonh · 3 April 2005 at 9:23PM

Sack the accountant may be advisable but it also may not be.

If the accountant uses a range of allowances which you have as self employed which you know nothing about yourself, you may save more in tax than the accountant costs.

The accountant should be made aware of the employed income as that will almost certainly use some/all of your personal allowance. Providing the P60 should suffice and it will add virtually nothing to your bill.

Poppy9 · 3 April 2005 at 9:35PM

It could be even easier for you. If you only work for one company you could be classed as a sub contractor. This would mean that they would pay you through their payroll and make the necessary tax and ni payments. They would automatically inform the tax office of all your earnings. Same with the p/time job they will automatically apply the tax code given by the IR.

If you have expenses relating to your self employment you would still need to claim them. Filling in the self assessment forms is not difficult. Next time the accountant sends them to you for signing - photo copy them. You can use this as a template for the following year.

Basically if I remember correctly you will have 2 forms, 1 for self employment and one for other employment. On the self employment forms as you are under 15k you just input your expenses - the notes of guidance tell you what can be classed as expenses (think its consumables, not capital items - capital items i.e. large items of equipment divide by expected lifetime (usually 3 or 5 years) and take that as 1 year cost of using asset, premises costs i.e. rent, rates, utility bills - only 10% if you use your home though, bank charges). You also input your income on the form. You will also need personal BS/Bank statements of any savings account to enter amount of interest paid in years. The BS/Bank should send you a tax certificate intime for you to complete the form without you requesting. There is also a line on the form for you to enter your pension contributions if you make any. For your p/time job you get a tax certifcate from your employer at the year end - you input this onto the form in the appropriate box. You don't need to calculate the tax due leave it to the IR - but get a rough idea to be sure if I was you. I used to complete on line so any input errors were mine.

Good luck.:)

Albiwobble_2 · 3 April 2005 at 10:10PM

Get yourself a Simplex 'D' Accounts Book from your nearest stationers, enter all your figures as they become known and claim for everything that is or even might be related to your business and this will eventually give you a net profit which will be taxable. Take the book to your IR office and they will calculate your tax liability for you. You will save hundreds of pounds of accountancy fees.You must declare the P/T job and give the revenue your tax number for reference. You don't want to be taxed twice, do you.

Self Employed & Part Time,How do they mix?

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