Paying tax on freelance work with full-time job?

tbs152

Hi all

I currently have a full-time job on which I pay tax and NI as normal. Since January I have been doing freelance work 'on the side' and registered self-employed then. I have now received my tax return and am wondering how I proceed with it.

I have records of all of my transactions for freelance work, and the total for April 2010 - April 2011 is £1573.

Do I have to pay tax on this amount, and if so do I need to fill in a tax return for my main job too even though it's taken automatically?

Any advice appreciated!

Fiddlestick

tbs152 wrote: »

I have records of all of my transactions for freelance work, and the total for April 2010 - April 2011 is £1573.

Income Tax will probably be levied at 20% on that, with NI being separate.

Do I have to pay tax on this amount, and if so do I need to fill in a tax return for my main job too even though it's taken automatically?

Yes, yes and yes,

On your Self Assessment you will enter the details of your PAYE employment and the total tax paid during that employment (it will be on your P60).

There will be another line where you enter your self-employment income and at the end of the SA process it will tell you if you owe any tax on the amount.

It's not a difficult process if you do it all online.

Since your earnings are so small (and you already pay qualifying Class 1 NICs on your PAYE job) you can fill in a CF10 form from HMRC and claim a small earnings exemption on the additional NICs you would need to pay on your self-employment income.

Let me know if you have any questions

Cook_County

You pay tax on the profits from your business, not the turnover. You will need to calculate deductible expenses as these will reduce your taxable profit and therefore your tax.

Fiddlestick

Cook_County wrote: »

You pay tax on the profits from your business, not the turnover.

Only if you work through a limited company.

If you work in a personal capacity then you need to account for the whole amount on the self assessment.

suso

Fiddlestick wrote: »

Only if you work through a limited company.

If you work in a personal capacity then you need to account for the whole amount on the self assessment.

you still only pay tax on the profits, NOT the turnover, whether its a ltd company or as a sole trader,