Help - income tax SA

MarcoM

Hi,

I earn 30k gross (PAYE) a year and I have made about 6k gain on an overseas project not related to my job.

So far I have not had to fill in a self assessment but as I have now made an extra 6k I will have to do so.

I have the following questions:

a) Will my current tax code change?

b) How ill HMRC collect the extra tax. Will they send me a separate bill or will they collect through my employer?

c) Will they send me a calculation of the new tax owed?

d) Do I need to include details of interest earnt on my existing savings even though these are income from my job?

Thanks

Possetjohn

I earn 30k gross (PAYE) a year and I have made about 6k gain on an overseas project not related to my job.

So far I have not had to fill in a self assessment but as I have now made an extra 6k I will have to do so.

The way I read the first two sentences is you are both employed and self employed. You need to declare you are self employed to HMRC if you have not already done so! Time penalties apply!

a) Will my current tax code change?

It shouldn't. They will collect the normal tax from your employment by PAYE and the self employment and any other income via self assessment.

c) Will they send me a calculation of the new tax owed?

If you do the self assessment online you get it immediately, if you make a paper return yes! but the time taken depends on the tax office you are dealing with!

Do I need to include details of interest earnt on my existing savings even though these are income from my job?

Unless these savings are in tax free savings (ISAs or equivs) then unfortunately the interest is counted as income and you have to pay tax on it. Most UK interest paying accounts (non-ISA) only pay the net interest with tax at 20% already deducted so no extra tax is payable, but they have to be declared!