Tax implications of a second job

5mudg3

Hi all, im wondering if any one could help me. I currently work a full time job 37.5 hours per week and earn around the 22k mark each year.

Im looking to start a company to do some IT work but do this along side my current job. I wouldnt be earning loads of money and id say it would be under 10k each year. I was wondering if any one knew how to go about this and more than anything the tax implications behind it all. Some one told me that if i set the business up they would take 40% tax from me as its classed as my second job - if so would it really be worth me doing it?

Im really new to this, the reason why i ask is when im doing the IT work i will be invoicing companies and then would then pay me. How would i go about the tax scenario.

Im sorry if im posting a pathetic question but as i have not done any thing remotely similar to this i have not got a clue.

Thanks in advance.

Lil_Me_2

You'd need to register as self employed with HMRC. In terms of tax since you're earning 22k anything you earn on top of this is 20% tax until you hit the higher rate tax bracket then you'll pay 40% on anything over that. You can also take off the cost of reasonable expenses, i.e anything that is necessary for your business such as mileage to meet clients etc.

jhp

Welcome heres the Tax Forum http://forums.moneysavingexpert.com/forumdisplay.php?f=22 where the tax geeks hang Where this sort of question should be posted.:D


Similar sort of question here https://forums.moneysavingexpert.com/discussion/3311320

5mudg3

Thank you both for your quick replies, ill have a look at these forums.

Its greatly appreciated.

GAH

Also I would check your work contract with your employer to make sure you aren't breaching your contract.

callybass

Hi- it's another question, but as I'm new at this I'm not sure how to post yet.

I have a job £29,000 a year, I have started a little business as a sole trader and wasn't making much to start, but it's starting to beef up a bit now and I don't want to end up being prosecuted for not paying tax, but I'm not sure what the implications would be registering 12 months after I started and what level of tax would be expected.(or how to pay it)

I do understand that I would have to take my purchaes of any incoming monies to leave me a level of profit- am I taxed on this and how?

nathand_2

callybass wrote: »

Hi- it's another question, but as I'm new at this I'm not sure how to post yet.

I have a job £29,000 a year, I have started a little business as a sole trader and wasn't making much to start, but it's starting to beef up a bit now and I don't want to end up being prosecuted for not paying tax, but I'm not sure what the implications would be registering 12 months after I started and what level of tax would be expected.(or how to pay it)

I do understand that I would have to take my purchaes of any incoming monies to leave me a level of profit- am I taxed on this and how?

Usually just a £100 penalty but speak to an accountant.