Tax confusion for two separate jobs

personaltrainer21

I am employed full-time at a sports retailer, but I recently set-up as a self-employed personal trainer at the same time (part-time of course bit with the view of eventually going full-time).

I'm a bit confused as to how much tax I should be paying for my self-employed job being as it's a second job, do I pay more than if it was my only job? I know that I only pay income tax on profits but what percentage of these total earnings should I be putting away? Obviously I don't want to be left short come self-assessment.

Thanks

jem16

personaltrainer21 wrote: »

I'm a bit confused as to how much tax I should be paying for my self-employed job being as it's a second job, do I pay more than if it was my only job?

You will not pay any more or any less tax if you had one job or four jobs. Tax is taken on your total income.

Basically if you already earn more than £7475, your tax-free allowances are already being used up so you will pay 20% tax on anything above that or 40% tax if you earn more than £42,475 in total. Of course if it's even higher you could pay 50% tax.

personaltrainer21

So do I pay 20% tax on all of my personal training earnings then? Or just on profits after expenses? Though either way I guess it would be sensible to put away 20% of all the earnings (plus NIC) as I won't know what my expenses are until they're all added up in April anyway.

LittleVoice

personaltrainer21 wrote: »

So do I pay 20% tax on all of my personal training earnings then? Or just on profits after expenses? Though either way I guess it would be sensible to put away 20% of all the earnings (plus NIC) as I won't know what my expenses are until they're all added up in April anyway.

Your "earnings" is your business turnover. Expenses are deducted before income tax is calculated.

Did your recent "setting up as self-employed" include registering with HMRC as self-employed? If not, ensure you do that.

personaltrainer21

Yeh I'm registered thanks guys