help required on 2nd income

scooters

All, this has probably been done to death but I couldn't find a specific answer.

The question relates to the following scenarion:
My wife currently works part time (due to baby) on a paye basis (primary employer) however she has been offered some consultancy work for another company on a self employed basis.
Now, I am assuming that she we will need to the following from a taxation/legal perspective.
(1) register with the hmrc as self employed (although she is still employed with the primary employer)
(2) ensure that enough is put by for tax and NIC - depending on how much is earnt for the self employed job. assuming tax @20%, nic @ £2ish per week and poss. nic of 8% of earnings greater than £5000 ish
(3) I'm assuming that the 8% nic are based on the self employed benefits only and not the cumulative salaries of both jobs.
(4) keep receipts for everything
(5) is there anything that we have got wrong and or forgetten?

any help would be greatly appreciated

fengirl_2

First of all, I would want to be assured that she is genuinely self employed. Some employers will try and avoid their responsibilities by just telling someone they are self employed when they are not in fact. Your wife can check this with her local tax opffice. Assuming she is genuinely self employed, the answers to your questions are:
1. Yes, she has to do this within 3 months of starting the consultancy.
2. Yes, but do take expenses into account. Class 2 NIC will be payable by DD on a monthly/weekly basis.
3. Yes, Class 4, the 8% charge is on profits only (because the class 2 charge is very low).
4. Yes, and keep her book keeping up to date - a simple spreadsheet should be enough.
5. You seem to have it all covered.