2nd job as "self employed" income

SplanK

My other half has started a part time weekend job teaching spanish at a local primary school - just a few hrs on a saturday along with her full time job during the week..

her full time job pulls in circa £20,000 before income tax a year and pays tax and NI already by the time it lands into her bank account...

however the part time job - she is been paid in full - no tax, no NI. She invoices the school for the time, and the per/hr rate and gets paid it... IT is bringing in around £160 per month....

I am guessing she will need to pay tax and NI on this?? Or at least declare it?

nexuss

Obviously she has to declare it like with any income you are supposed to.The paper trail would lead to her from the school if she does not anyway.

CLAPTON

given the information you have provided, your OH need to register with the HMRC as self employed.. best to phone them

they will need to pay tax at 20% but NI should be subject to a low earnings exemption.

SplanK

thought as much...

getting her to call them now about it!

am i thinking that as she is invoicing the school for her wages as such - she could claim back things like milage costs from home to the school and back again from the pre-tax ammount, and then tax on the remaining?

fengirl_2

She cannot claim back anything as she wont have paid tax in the first case. However, she needs to keep receipts and records of all her expenditure and include these in her year end accounts as they will reduce her tax bill. Simplest thing is to include 40p pm for use of car, plus a proportion of the running costs of the home for use of office. She needs to remember things like books, stationery, etc.

SplanK

sorry - wrong use of words - not claim back as such....

but could she:

Income: £150
Outgoing for car (say £10)
Books/Stationary (say another £10)

so she would only have to pay income tax on £130 instead of £150?

Cook_County

Yes, she'll draw up income and expenditure accounts for her chosen accounting period and adjust these for tax (eg to claim £3 a week for use oif home, 40p a mile for the car, investment allowance for capital items etc)...