Extra work on top of full time job

sedg00

Hello All,
I work full time as a graphic designer. This year i'd like to get some extra work, more likely freelance design work for friends, contacts, that kind of thing. I'd probably only be earning an extra few grand a year, but i know i need to pay tax on it.

How do i go about this? do i need to just call the Inland Revenue and tell them i will be earning a bit more this year and then do i need to fill out a tax return form?

Finally, will this affect the tax i currently pay via my employer?

thanks

fengirl_2

You will need to register as self employed with HMRC within 3 months of starting. You will pay class 2 NIC's by DD and any tax due will be payable in Jan and July following the year it is earned. You will show your accounts on your annual self assessment and it will not affect the tax you pay on your main job.

sedg00

Many thanks Fengirl.
So i have to pay class 2 NICS even if for example, i earn nothing in the whole year?! Seems unfair considering i pay NI through my current earnings!

chrisbur

sedg00 wrote: »

Many thanks Fengirl.
So i have to pay class 2 NICS even if for example, i earn nothing in the whole year?! Seems unfair considering i pay NI through my current earnings!

If your earnings are below a certain limit you can get a low earnings exception certificate.
http://www.hmrc.gov.uk/forms/cf10.pdf
The figure is £4825 for this tax year.