How much Tax do you pay on a self employed 2nd job

bridget180282 · 23 April 2009 at 1:48PM

Hi All

I currently work full time doing 37.5 hours and my tax code is 592L
I am wanting to be self employed part time doing beauty - so far I am trained in nails and have being doing family and friends for some time at cheap rates or in exchange for other treatments
I am going to do a tanning course and I want to do this properly and advertise so I will need to be paying tax
How much tax and national insurance would I pay? and do they take into account the cost of the course and any materials I need?
Any info of anyone else who has done this would be a great help, I expect my earnings could go from 0-100 per week depending on custom so some weeks I may have no one in and wont earn anything extra

Thanks
Bridget

IlonaRN · 23 April 2009 at 2:02PM

bridget180282 wrote: »

Hi All

I currently work full time doing 37.5 hours and my tax code is 592L
I am wanting to be self employed part time doing beauty - so far I am trained in nails and have being doing family and friends for some time at cheap rates or in exchange for other treatments
I am going to do a tanning course and I want to do this properly and advertise so I will need to be paying tax
How much tax and national insurance would I pay? and do they take into account the cost of the course and any materials I need?
Any info of anyone else who has done this would be a great help, I expect my earnings could go from 0-100 per week depending on custom so some weeks I may have no one in and wont earn anything extra

Thanks
Bridget

If you earn over your personal allowance in your main job, then you will pay 20% tax on your profits from your self-employed work. Expenses such as materials and advertising would come off the earnings before you work out profit, and it's only profit that you pay tax on.

You can get a "small earnings certificate" so you don't need to pay NI on the self-employed work, but it is only worth doing this if you pay NI on your main job.

I'm not entirely sure about the tanning course, I would have thought it could be claimed as expenses, but it's probably best to speak to the people at the tax office about it.

There is info on setting up as self-employed on the first post in the mystery shopping thread, as well as a link to info about what you can claim as tax-deductable expenses.

mrkbrrws · 23 April 2009 at 2:04PM

You will pay 20% tax on your profit.

National Insurance Contributions are £2.40 each week, but you would be exempt if profits are under £5,075. In addition, on any profits over £5,715 you pay 8%.

Your expenses are deducted when you calculate the profit of your business.

lozza1985 · 23 April 2009 at 7:11PM

I had to register as self-employed for doing Avon, and as I work full time I was told when I rung up that as I already pay NI on my fulltime job there is no point in paying it again, so therefore as someone has already mentioned you can apply for an exemption certificate. It is really easy to register as self-employed, only took me about 5 minutes on the phone - just make sure you have you NI number handy! If you save receipts for anything that is a cost for things bought for your business then you can deduct that from your earnings so that you will only pay tax on your profits. There are free courses you can go on, they will send you some details in the post once you are registered as self-employed. Good luck with it!

Snorklos · 3 September 2009 at 5:17PM

Hi there everyon

sorry this is an old post, but I have been trying to get advice from the tax office and can't get an email contact... I am employed 28 hours paye full NI, and I too want to take on some private pupils to boost my income...

I live in luton, but my tax office is dealt with by Hertfordshire, but an address in Manchester... do I need to ring, luton, herts, or manchester to discuss. I worry myself to death about tax and keeping records, and have avoided taking on extra work to stay simple, but the credit crunch has pushed me to really needing to up do something drastic. The last poster mentioned it being a simple phone call.....

would people recommend having an accountant to deal with the tax side of things.... I have lots of things to buy to set myself up initially.

Sorry to sound like a moron, but at the end of my tether!!!!

lozza1985 · 3 September 2009 at 5:28PM

Snorklos wrote: »

Hi there everyon

sorry this is an old post, but I have been trying to get advice from the tax office and can't get an email contact... I am employed 28 hours paye full NI, and I too want to take on some private pupils to boost my income...

I live in luton, but my tax office is dealt with by Hertfordshire, but an address in Manchester... do I need to ring, luton, herts, or manchester to discuss. I worry myself to death about tax and keeping records, and have avoided taking on extra work to stay simple, but the credit crunch has pushed me to really needing to up do something drastic. The last poster mentioned it being a simple phone call.....

would people recommend having an accountant to deal with the tax side of things.... I have lots of things to buy to set myself up initially.

Sorry to sound like a moron, but at the end of my tether!!!!

Hi there is a specific phone number for registering as self-employed, I just rang that one - doesn't matter whereabouts you are. They were really nice - I know some people have accountants even just for doing avon, but I'm not bothering, can't afford the extra cost tbh. The form looks simple enough, and I've googled lots of things I wasn't sure about if I could claim for or not and found good answers. The phone number is somewhere on the the revenue & customs website - but I imagine it is probably listed in the mystery shopping thread as mentioned previously.

Chocforever · 3 September 2009 at 7:15PM

Snorklos

You just need to register as self employed with HMRC. You can do this by post or by using an online form for submission. Like lots of government organisations, they don't generally do email queries.

The registration isn't too scary. It just means you have notified them that you have a source of income which isn't taxed at source. You will need to fill in a tax return to declare that (and the rest of your income). I can't imagine it would be difficult to calculate taxable income from tutoring - presumably it will just be your income and perhaps some tax deductible costs if you are driving to students etc. The main thing is to keep good records of any income and expenditure.

How much Tax do you pay on a self employed 2nd job

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