Help.. Self Employed as well as Employed?

nzmegs

it would have been because your first job took into account the tax relief. You don't get taxed on the first £6,000 or so that you earn. your second job would have been taxed on everything you earned because your tax releif was already used up on your first job. Hope that makes sense.

jadenicole_2

Okay, so just to clarify...

1. This won't affect my monthly pay with my full-time employer

2. As long as I don't go into the 40% tax bracket in total then the self-employed work will be taxed at 20%

Thank you

P.S. I have filled in both forms but it looks as though they go to different addresses.. hopefully they will tie up and I won't get charged the N.I.

Hammyman

Jadenicole, you were worried about working out how much to pay. If you fill in your self assessment form and send it off to them before the end of October, they will calculate it for you and send you a bill. On the form as you will most likely be earning less than £15k self employed there is just a few boxes to fill in. For each PAYE job, you'll have to complete a separate sheet so you'll need to make a copy for each of that particular page.

jadenicole_2

Thank you!

I've set up a spreadsheet for income and one for expenses, and brought some folders to keep receipts etc in.. Hopefully that is enough to suffice.

I've also sent the two forms off today (thank you for those links)

I'd rather do this than feel guilty any day!!

KiKi

jadenicole wrote: »

Okay, so just to clarify...

1. This won't affect my monthly pay with my full-time employer

2. As long as I don't go into the 40% tax bracket in total then the self-employed work will be taxed at 20%

Thank you

P.S. I have filled in both forms but it looks as though they go to different addresses.. hopefully they will tie up and I won't get charged the N.I.

If you aren't sure about the NI, then put 28% aside for now (20% tax and 8% NI) and then you're covered. I don't know the rules for Self-employed NI if you're also working PAYE, but if you put it aside at least it won't be a shock if you do get an additional NI bill!!

KiKi

jadenicole_2

KiKi wrote: »

If you aren't sure about the NI, then put 28% aside for now (20% tax and 8% NI) and then you're covered. I don't know the rules for Self-employed NI if you're also working PAYE, but if you put it aside at least it won't be a shock if you do get an additional NI bill!!

KiKi

Thanks for that, I've filled in that Small Earnings form, and it looks as though you only pay NI if the Self Employed business earns more than £5,075.. but it is still confusing!

Hopefully my expenses.. petrol, car parking etc will help

KiKi

jadenicole wrote: »

Thanks for that, I've filled in that Small Earnings form, and it looks as though you only pay NI if the Self Employed business earns more than £5,075.. but it is still confusing!

Yes, that's definitely the case, but I don't know if the full 8% has to be paid if you already pay NI through PAYE; I'm sure someone on here will know, though.

KiKi