Tax for self employed and employed

brinkjess

Hello

I currently have a full time job but I also want to start my own business of DJing at the weekends and evenings.

I pay National Insurance and PAYE for my full time job but have no idea what or how I would pay tax and NI for the self employed job?

Can anyone shed any light?

Thanks

Jess

Chinkle

You need to register with HMRC as soon as you start self-employment (if you don't do that within a few months you get fined).

Depending on how simple or complex your self-employment work is you may want to get an accountant to help with the books. At the most basic level you need to keep copies of invoices and expenses relating to the work so you have the information you need to file your tax return at the end of the year.

Once you are registered HMRC will tell you when you need to complete your first tax return. They also run free courses on setting up your own business which you may find useful to attend.

HMRC will also arrange for you to pay Class 2 national insurance which is a standard amount for all self-employed people and usually paid monthly by direct debit. You then pay Class 4 national insurance on your self-employment profits based on your tax return.

Most importantly remember to put away the money to pay your tax/NI when its due. Most people budget approx 30% of their earnings for this.

John_Pierpoint

If "profit" is likely to be less that £5075 you can opt out of the extra NI, BUT you have to register & then opt out.:

http://www.hmrc.gov.uk/forms/cf10.pdf