Help please!!!!!!!!!!!!!!

Lmjb

I currently work full time for an employer and am taxed and NI'd in the usual way. However I have just started a 2nd job as a fitness instructor twice a week and earn roughly about an extra £60.00 per week (this is likely to increase). Out of this would come my expenses but also I am using this 2nd job to raise money for our local church of which I plan to donate about £50.00 per month. My question is what would I be taxed on because would my donation be seen as an expense being as the church is also where the fitness classes take place. Please help because i'm clueless where tax is concerned???

McKneff

You would be taxed on the £60 less your expenses.(then it depends what the expenses are) The £50 is not an expense, you are earning it, then giving it away.

Savvy_Sue

Lmjb wrote: »

Please help because i'm clueless where tax is concerned???

Then you need to get clued up, because you now have income from self-employment to deal with.

McKneff wrote: »

You would be taxed on the £60 less your expenses.(then it depends what the expenses are) The £50 is not an expense, you are earning it, then giving it away.

Yup. OP, what you do with your money is your own affair, as long as you pay tax on it first.

Register as self-employed with HMRC. Ask them to send you a NI small earnings exemption certification, because on £60 a week you won't be earning enough to have to pay NI on your self employed earnings, and there's no benefit from doing so.

Then ask the church treasurer for a Gift Aid form: that will enable them to reclaim the tax you've paid on your donations.

In due course, HMRC will send you a self assessment tax return: you fill in your earnings from your employment, your profit from your self-employment, do it early enough and they will work out how much tax you need to pay.

Lmjb

Thank you. It may be better for me then to ask the church to charge me a monthly fee because then that way at least I will have a track of my expenses. Do you think this would be better and easier for me to do it this way? Thanks again for coming back to me so quickly

Savvy_Sue

Lmjb wrote: »

Thank you. It may be better for me then to ask the church to charge me a monthly fee because then that way at least I will have a track of my expenses. Do you think this would be better and easier for me to do it this way? Thanks again for coming back to me so quickly

But what would this monthly fee be for? I don't see how it helps to make someone else responsible for keeping track of your expenses: it's your money, you need to keep tabs on it!

anamenottaken

Lmjb wrote: »

Thank you. It may be better for me then to ask the church to charge me a monthly fee because then that way at least I will have a track of my expenses. Do you think this would be better and easier for me to do it this way? Thanks again for coming back to me so quickly

I was going to suggest you do this. You said the instruction is carried out on their premises. They are therefore providing you with a service and therefore it's a charge for hiring their premises. Therefore a straight deduction from your income.

chika

Rightio - I have no clue on the legality of this I'm no accountant. However our church is very close to a big stadium and the carpark is used for stadium traffic. The people who run it are volunteers but get expenses. Is there any way you could be a volunteer fitness instructor, have people pay the church via donation and the church give you your expenses out of the donations? There is some info here

http://www.volunteering.org.uk/resources/goodpracticebank/Information/volunteerexpenses

When I was a volunteer as a student, I regulary got expenses that were tax free and much more than my earnings at my PT job for the equivalent amount of work. Just an idea...

Lmjb

Thanks for your advice - I have spoken with an accountant and he suggested it would be better if the Church charged me for the use of their hall because then it would keep my books clean.
Thank you :T

nexus2011

Are you covered insurance wise as a fitness instructor ?

Lmjb

Yes i'm covered - thats one thing I sorted out first!!
I'm now booked to attend a workshop in May with HMRC to go through everything I need to know and about being self employed

gingerpuss

Is payroll giving an option? Where the donation is deducted from the gross pay before tax?