How will I be taxed?

Animal_lover

I am starting up as self employed but will also still be keeping my job working as veterinary nurse - I work part time as employed at the vets. How will I be taxed, will the HMRC take into account that I already pay tax and contributions to NI? Also when I do end of year tax returns how do they take the tax payment and is it all in one go?
Sorry if I sound really naive but when it comes to tax etc I am!
Thanks in advance for any advice:D

orangeslimes

When you fill in your tax form there will be a section to fill in with details of your employed income and another for your self employed income and your total tax liability will be based on both of them added together.
I think there are different options for how to pay your tax so it depends.

Sheppyd_2

remember to notify the Inland revenue that you have commenced the self employment within three months otherwise you will get a fine!

fengirl_2

The 3 mth grace period has now been abolished. You need to notify as soon as possible after starting to trade.

Ray_Arman

When you complete your Self Assessment Tax Return, you will be required to complete details of both your employment income and self employment income. On the employment pages you will include your earnings and tax paid.

In arriving at your tax liability, your tax calculation will, firstly, calculate your total tax for the year based on both types of employment and then it will deduct from this the tax you'd already paid. The only thing which you will have to keep an eye on is the national insurance as there is an annual maximum so check this if you are making more than £50,000 from self employment. Any overpayment of NIC can be refunded.

Animal_lover

Many thanks for all the above advice. I have already informed the Inland revenue but not heard anything for a while now - is this normal to take a while?

Seanymph

Yes - but always worth another call to check they have got it down right!