Full time/Part time/Freelance mix

rikbrown

Hi,

Just looking for some clarification on this - sorry if it's been mentioned before, did have a search around.

In 2009/10 I was doing a work placement from Uni at £15k, which was being taxed as expected. I went back to Uni in September, but from November was working part time at the same place (about £500-600pm pre-tax). My second part time wage slip had a significant tax rebate in it, rather than deducation - I guess because they were adjusting as they'd previously been taxing me on £15k all year.

Anyway, since January I've been doing some freelance work with another company, not on PAYE (just paid directly as BACS). This is averaging about £300-400pm I think, though less recently as I've had coursework and exams to focus on.

I registered as self-employed, and got a letter demanding more national insurance to be paid (around £35 for January-April).

Anyway, I'm assuming I'll have to pay tax on the earnings from January-April soon, will they send me details for this? I tried to register for self-assessment but it asked for a unique taxpayer number (or something like that), which I wasn't sure about.

My other worry is that the tax I'm paying for my part time work is probably incorrect (? - as it won't be taking account of the freelance earnings). On the self-assessment form (which I've never done before), I assume I declare _everything_ - full-time, part-time and freelance - that I've done in 09/10?

Thanks, sorry for the slightly disjointed message!
Rik.

Chinkle

Yes, that is exactly what you do, declare all your earnings and any PAYE tax you have already paid. They'll calculate and let them know what you owe. They'll probably ask you to pay an amount 'on account' for this tax year too, assuming you will have the same level of freelance earnings. If you have registered as self-employed you should have a UTR already, check the letter they sent you.

property.advert

Seriously consider going through your own Ltd Co. You can do all your own accounts and file online. Companies from about £18 through an online agent (opened another two last month for myself). Been doing it this way since the 1990s and way better than self employment.

It is a little daunting but it really is not. Do some reading, get googling and if you want, drop me a message.

John_Pierpoint

Remember the tax year runs from 06apr to 05apr of the next year.
Did you get a P60 for tax year 09/10 from your employer?
How much did you earn in 09/10?
How much tax has been deducted?

Assuming you do owe (more or less) tax for 09/10 you will probably be asked to complete a return for the year because of your self employment income.

This needs to be sent in before the end of October or keyed in on-line before the end of January. The on-line system allows you to play with the rules and train your self. Only when you think you have got it right do you submit your return and get charged your tax.

If you are employed your master (employer) is expected to pay your expenses. When you are self employed, you charge your expenses against your profit thus reducing your taxable income.

We cannot really give you more tips unless we know the annual figures and some idea of what you do.

rikbrown

Hi,

Thanks for the tips. I will get in touch with my employer and find the exact figures. I haven't got a P60 yet, though because I'm part time it's probably kicking around the office somewhere.

It's approx £7500 I think I've earned so far this year through part-time and about £2000 from the self-employed work. Sorry I'll be more precise when I've got all the details.

Chinkle: I've got the demand for national insurance in front of me, the other document is at home. What does the UTR look like? There are a few unique looking numbers on it!

property.advert: Dropped you a PM. But any thoughts anyone else has on going the company route is welcome!