Second job - tax?

brewster85

Hi,

I have recently been offered a job that will be a secondary income bringing in roughly £3.5k per year on top of my (roughly) £20k main income.

Could someone point me in the right direction, I need to work out how much tax I will be liable to pay on this secondary income, and therefore whether it's worth the hassle!

The job will be on a "cash in hand" basis meaning I'll be liable to sort out the tax.

Much appreciated!

:beer:

redlady_1

Is it cash in hand or is it self employed income? They are two different beasts.

brewster85

Cash in hand

sarah1972

Your personal allowance will be used in your first income so you will have to pay tax on all of your second income and also ni aswell, Dont take that as gospel but thats my impression but if its cash in hand then you will need to register as self employed.

You may find more help on the tax board? http://forums.moneysavingexpert.com/forumdisplay.html?f=22

CLAPTON

you are liable to pay 20% tax on theses additional earnings
you would be below the NI minimum

brewster85

wow..I guessed it would be a ridiculous amount! Thanks very much for your help.

Nosht

If it is really cash in hand then your employer has a duty to deduct 25% from your pay to cover him for you not declaring the income.

N.

lozza1985

I have a full time job and am registered as self employed for Avon. As I already pay NI on my full time job, when I rang to register as self employed they were very helpful, and told me that I could exempt myself from paying NI again so long as my avon earnings were below about £5K - can't remember exact figures but gives you a rough idea. If you are going to be registered as self employed, depending on what this second job is, there could well be some costs that you can factor in, to reduce how much tax you have to pay on this second income, as you only pay tax on your profits.