additional,irregular income

nonalcoholics

Hi, I work as a nurse, and pay tax and N.I by PAYE. I have recently started to do some irregular lecturing for a private company but not with PAYE. I have registered online as self employed withHMRC, how do I go about paying the tax and N.I for this? It won't be a large income, probably around £2500/year. Many thanks in advance!:D

Rolo_Tomasi

You will receive a Tax Return next year and you will put your total income onto this. Any unpaid tax is due to be paid by 31 January following the end of the tax year - ie if you became self employed during the current tax year, your first tax bill will be due to be paid by 31 January 2011.

Your self employed income will be tax at either 20% or 40% depending on the extent of your income. If you only owe £500 (20% of £2500) then you will have the choice of either paying it in full or by changing your tax code from April 2011 which will effectively collect the tax through your PAYE earnings. You will indicate your choice on the tax return.