Teacher Declaring Extra Income to Tax????

CLAPTON

samlovescomps wrote: »

Sorry to keep asking but do you know if I do this will they put me on BR Tax Code where I am not entitled to the £7475 p.a. tax free? If they do this there is no point me doing the tutoring because I will be taxed an 20% of £7475 which is £1495 and wont earn that much for tutoring. ???

you additional earning will be taxed at 20% just as they would be if you got a pay rise in your current job

if ( and I don't know whether they would do this) they coded out your PAYE to collect the tax on 800 then the taxcode would be adjusted to 7474-800 = 6674 so collecting an extra 160 in tax

samlovescomps

mildred1978 wrote: »

You won't lose your tax free allowance. Why would you think that?

It says on their site that they do this when you take a second job. I thought they may see this as a second job. THanks x

CLAPTON

samlovescomps wrote: »

It says on their site that they do this when you take a second job. I thought they may see this as a second job. THanks x

what they mean is that the second PAYE job has a BR taxcode (i.e. all your second job is taxed at 20%) but your first job retains its normal taxcode 747L or whatever

samlovescomps

CLAPTON wrote: »

what they mean is that the second PAYE job has a BR taxcode (i.e. all your second job is taxed at 20%) but your first job retains its normal taxcode 747L or whatever

Thanks Clapton. I will call Tax people next week to sort it out.

Thansk everyone!

jem16

samlovescomps wrote: »

It says on their site that they do this when you take a second job. I thought they may see this as a second job. THanks x

A 2nd job would normally receive a BR tax code because the 1st job has the main tax code of 747L. So if the tutoring was operated under PAYE it would indeed be given a BR tax code with the 747L still atttached to your main teaching job.

So who will you be working for as a tutor and do they operate PAYE?

Mikeyorks

samlovescomps wrote:

I thought they may see this as a second job

Indeed. But - we're on post #27 and you still haven't replied as to whether the extra income will be as employed or self employed!

Which would greatly assist those giving the advice.

samlovescomps

jem16 wrote: »

A 2nd job would normally receive a BR tax code because the 1st job has the main tax code of 747L. So if the tutoring was operated under PAYE it would indeed be given a BR tax code with the 747L still atttached to your main teaching job.

So who will you be working for as a tutor and do they operate PAYE?

No it wont be PAYE it will be cash. I will call Tax Office on Monday and ask them what I do. As long as I make something from the tutoring I will be happy. xx

samlovescomps

Mikeyorks wrote: »

Indeed. But - we're on post #27 and you still haven't replied as to whether the extra income will be as employed or self employed!

Which would greatly assist those giving the advice.

Sorry I thought I had. Did not expect this much response!!!

Mikeyorks

Nor did I ........... we were on post # 22 when I started that! And as I'm looking after someone's house / hounds / hens etc - the laptop I'm using lacks the usual familiarity. And editing is as much a pain as the Great Danes! Bless.

dzug1

samlovescomps wrote: »

Sorry to keep asking but do you know if I do this will they put me on BR Tax Code where I am not entitled to the £7475 p.a. tax free? If they do this there is no point me doing the tutoring because I will be taxed an 20% of £7475 which is £1495 and wont earn that much for tutoring. ???

They may put you on BR for your tutoring job, leaving your main job unchanged.

That would mean you would pay 20% of your tutoring earnings in tax - which, assuming you are not (and don't become) a higher rate tax payer, is correct.