Teacher Declaring Extra Income to Tax????

samlovescomps

Hello.

I am a Full Time Teacher and I have been asked to do some extra tuition. I will earn about £160 per month for 5 months if I accept. I dont want to accept until I know the implications to my tax and NI.

Does anyone know the answers to my questions below;

1. How do I declare it? Can I go to HR at school and tell them?
2. Does my Tax Code change to Basic Rate?
3. Do I pay NI on it?
4. Will my NI code change?

Any help would be appreciated.

THanks

duchy

Is the extra tutition a school thing and you'd be paid by your current employer ? If not then it's nothing to do with the HR dept and you'd fill out a tax return each year as that part of your earnings would be classed as self employment and you'd register yourself as self employed with the taxman . Your tax return would then consist of the data from your P60 from your main job -plus a declaration of earnings from the self employed part. You'd pay the extra tax by January of the following year.

Your tax code may change depending on what you currently earn . Your tax code is calculated on your total earnings. (The self employed part-if applicable- may be subject to certain deductions depending on what you are doing-for example if you are tutoring in your own home in certain circumstances you can claim for heat, light etc or if you are personally supplying writing materials, photocopying costs etc)

I'm quite surprised a university graduate doesn't have the researching skills to know to google for such a basic question though.

mildred1978

duchy wrote: »

I'm quite surprised a university graduate doesn't have the researching skills to know to google for such a basic question though.

Or even search on here - its asked so often!

(Mind you, I've known NQTs who thought they shouldn't pay tax on their £24k earnings because "they'd been students".)

samlovescomps

Thanks Duchy. Not sure about your nasty comment at the end though!! I did research it but it is not clear online especially about NI.

Thanks anyway.

duchy

Bless about the NQTs-we had some like that too.

Nasty ? What was nasty about expecting someone with at least three years of university to be able to research ?
Try applying a little commonsense-You'll find many of your collegues will do the same thing -both teachers and LSAs as it's very common to have either more than one job or to tutor in addition to another job -Maybe you're just lazy rather than clueless though ? (See THAT's nasty-the first comment wasn't. If you thought the first comment was nasty I hate to think how you survive appraisals or even the kids in the classroom TBH though.

samlovescomps

Don't patronise me.

mildred1978

If it is a separate job then NI is calculated separately. If you earn more than about £97 in any one week you'll pay NI as well as basic rate tax (assuming your earnings from teaching are under £42,500 per annum).

samlovescomps

Thanks Mildred. xx

samlovescomps

duchy wrote: »

Bless about the NQTs-we had some like that too.

Nasty ? What was nasty about expecting someone with at least three years of university to be able to research ?
Try applying a little commonsense-You'll find many of your collegues will do the same thing -both teachers and LSAs as it's very common to have either more than one job or to tutor in addition to another job -Maybe you're just lazy rather than clueless though ? (See THAT's nasty-the first comment wasn't. If you thought the first comment was nasty I hate to think how you survive appraisals or even the kids in the classroom TBH though.

I just think you could have kept that comment to yourself. Also, I cope perfectly well with children in my classroom because I am respectful of everyone and I teach them to be respectful also. Disrespectful comments or ones designed to hurt or upset someone are not necessary. My mother always told me "If I can not say anything nice or constructive then I should not say anything at all!" Also, Ofsted deamed me an Outstanding Teacher in November. Keep your comments to yourself please!

CLAPTON

samlovescomps wrote: »

Hello.

I am a Full Time Teacher and I have been asked to do some extra tuition. I will earn about £160 per month for 5 months if I accept. I dont want to accept until I know the implications to my tax and NI.



Does anyone know the answers to my questions below;

1. How do I declare it? Can I go to HR at school and tell them?
2. Does my Tax Code change to Basic Rate?
3. Do I pay NI on it?
4. Will my NI code change?

Any help would be appreciated.

THanks

tax ia a bit complicated so it worth explaining

assuming the earnings aren't being taxed by your current employer then the following applies

1. you need to register as self employed to HMRC.
2. if you start work this tax year then you need to fill in a tax form and pay the necessary tax and NI by end of January 2013 (so plenty of time to think about it all)
3. in general your self employed earnings have nothing to do with your normal PAYE earnings and will not affect your PAYE tax code
4. your need to pay
- class 2 NI by DD (google the HMRC website but it's about £2.50 per week
-class 4 NI contribution 9% after the first 7225
-tax at 20% on everything unless your total earnings (PAYE plus SE)go over the 40% tax rate (43,475 after pension deductions)
- if you have a student loan then they will deduct some for this too
5. the class 2 NI is paid quarterly by DD; the others are paid in a lump sum by end jan 2013
6. you may be able to claim some expenses (maybe travel ) to offset against your earnings

and I believe that membeship of the General teaching Council fees are tax deductable if that is relevant to you

if you have any more questions do ask- ignore the unhelpful answers; this is an open forum and people are entitled to their opinions

samlovescomps

Thanks Clapton. That was really helpful. xxx