Unsure If I Should Be Paying Tax..

KarleyMarie

Not sure if this is the right place but anywho!

Recently OH + I have been struggling with money so I joined a babysitting company to earn a little extra money. My question is should I be paying tax on this as a second job? Even though it's not guarenteed every week etc..

I have a full time job already earning approx £800 a month after taxes. For babysitting I will be getting £6 an hour on friday or saturday nights minimum of 3hours so £18 a night.

Any help would be great!

Karley

Lokolo

Technically you should be as it's earned income. If you aren't getting payslips etc. I suspect the babysitting company isn't paying tax either though.

KarleyMarie

The company takes none of my earnings? They make their money by taking a booking fee.

I get paid in cash at end of night by parents

Lokolo

Ah so the company isn't paying your wages. I suspect this would make you self employed.

Basically everyone gets their tax allowance in their main job, you can change this but for the most, its in their main job.

So your main job where you get £800 after tax, you are using your whole tax allowance (£6475), so your second job (babysitting) you have no tax allowance and so should be paying tax on the earnings (20%) and N.I.

However, given that this job would make you self employed, I have no idea how you go about it.

You could keep it secret, but obviously I would never condone such a thing....

KarleyMarie

Thanks for your help.

elliemoo

Even though you are employed full time your second income also needs to be declard to HMRC. You can be employed and self-employed at the same time. Check out the HMRC website and you will get a contact number to register as self-employed, you will pay tax and national insurance on your earnings, but you can get a small earnings exemption from the NI, but all the info is on the site.

lozza1985

Its really easy to register as self employed, I just rang the helpline and they went through it all with me - I work full time, but am self employed for avon, doesn't affect your tax for your main job.