Tax on additional job

Gracust

Hi,

I have a full time job and pay the relevant income tax on that one.

I am looking at starting an additional job that would probably bring in approx. £1000 - £1500 per annum.

Do I have to declare this job to the Inland Revenue, do I earn enough from it, and would I then be better becoming V.A.T. registered or do I have to be a registered company to do this?

If I am charging each customer £250 for my services how do I calculate how much extra I need to charge them to cover my tax bill?

Any help would be most gratefully received.

Many thanks...Gracust

Jet

Yes, you do have to declare to the inland revenue, although if you are employed by an employer (rather than being self employed) they will do this for you.

It is a legal requirement to inform the inland revenue of any self employment within a certain time (3 months, I think).

If your turnover in the business is over £61k, you HAVE to register for VAT whether you are a sole trader, partnership or limited company. If your turnover is less than this, you can choose whether or not to register for VAT.

Assuming the profits from the new business don't take you into the higher tax bracket, you would need to calculate 22% of your profit (ie. after you have deducted your expenses and costs) and put this aside for your tax bill.

Business link has a good website which might help you. http://www.businesslink.gov.uk

Gracust

Jet,

Thank you, that was most helpful.

Regards...Gracust