Tax on extra income?

cheerio14

I've recently gone down to part time so to compensate for losing a days work (and £10k a year) I am starting to coach a cheer class. This pays £15 an hour for 8 weeks and I will have to invoice to get paid. Do I have to declare this income to be taxed? If so how?!!

Any help for a very confused newbie,

Thanks

Kiran

Yes you do have to declare it, you will be classed as self employed and you willl file a tax return. You can have income from a normal job as an employee as well as a self employed income. You have to tell HMRC within 3 months I believe and they can talk you through it

bobthedambuilder

Unless your residual wage from your job is lower than the tax threshold (which it doesn't sound like if one day per week lost equates to £10K!), then all your allowance will be used up in your employment PAYE. So you'll be paying tax on all your self-employed earnings. You'll pay 20% on total taxable pay up to £35000 (including your main job), and 40% on anything above this up to £150K, (then 50% above £150K if that's relevant).

You will need to let HMRC know. There's plenty of information on their website, and details of how to contact them here. http://www.hmrc.gov.uk/selfemployed/

cheerio14

Thanks for your replies, I moved jobs and had to go part time which is why there was such a big drop in salary so I'm now down to £21k and wondering if the extra income from cheer classes will actually be worth taking on with the tax coming off it too.

Thanks for your help :-)

bobthedambuilder

cheerio14 wrote: »

Thanks for your replies, I moved jobs and had to go part time which is why there was such a big drop in salary so I'm now down to £21k and wondering if the extra income from cheer classes will actually be worth taking on with the tax coming off it too.

Thanks for your help :-)

You would have been paying the same tax on the income from the day per week that you lost, so there's no difference really. Either you need the money or you don't.