Taxable deductions from self-employed 2nd job?

trippy

Hello. What a minefield being self-employed is?

I have a part-time job that I pay tax on through PAYE. I am also about to set up self-employed teaching Spanish after school. I'm trying to calculate my profit, on which I'll pay Basic Rate tax and am trying to work out what I can deduct from my profit. The mileage to the school and back? The cost of printing, photocopying & postage? Purchase of materials? Cost of the franchise? Home bills from when I'm preparing lessons? Cost of phone calls ring around the parents chasing for money?

I'm also wondering if I'll have to pay NIC? My self-employed earnings will be below the limit but added on to my employed earnings, it'll be over.

fengirl_2

You need to keep accurate records of all expenses which you incur in earning the profits. these are included as deductions in your accounts at the end of the year. All the things you mention would come into this category.
Use of car - you can either include 40p per mile for the first 10,000 miles and 25p pm thereafter, or else you can include the actual costs of running the car - petrol, repairs, everything and then add back in your tax return the private elenment of the car use. (First method probably easiest.)
Room at home - if yu use one room solely for business, then you include that proportion of your household bills. If you only use the room part of the time, then just include a small amoutn - £2-3 pw.
Cost of franchise is capital, so shouldnt be included.
If you are below the class 2 NIC limit, then you dont pay class 2 NIC - you dont add the two incomes together for NIC purposes.

ballack

fengirl wrote: »

You need to keep accurate records of all expenses which you incur in earning the profits. these are included as deductions in your accounts at the end of the year. All the things you mention would come into this category.
Use of car - you can either include 40p per mile for the first 10,000 miles and 25p pm thereafter, or else you can include the actual costs of running the car - petrol, repairs, everything and then add back in your tax return the private elenment of the car use. (First method probably easiest.)
Room at home - if yu use one room solely for business, then you include that proportion of your household bills. If you only use the room part of the time, then just include a small amoutn - £2-3 pw.
Cost of franchise is capital, so shouldnt be included.
If you are below the class 2 NIC limit, then you dont pay class 2 NIC - you dont add the two incomes together for NIC purposes.

Great information to know more about the small business tax deductions . Small business tax deductions are generally put into practice on the expenses concerned in the business. These expenses contain office stationeries, advertisements, postage charges, shipping fees, telephone bills, and Internet charges.