Self employed and a part time job

paulsm

Hi I am self employed and was looking at taking on a part time job in the evening , how would this work out it would I just do it as a normally employed person? Hand over p45 etc and pay tax & NI?

ukbill69

ring the inland revenue, im sure they can tell you.

powerbase

If you are self-employed you submit a tax return. There is a section in the tax return to give details of income from employment. I agree with ukbill69. Phone the tax people and they will help and possible send you on a course. It's not that difficult to do. Don't let it put you off getting a part-time job.

martindow

I believe you are obliged to tell the revenue within 3 months of any change in your circumstances so best to come clean. They will then send you the correct sections of the tax return when the time comes for that.

paulsm

so do I just let the employer take tax and NI as if I was a normal employee?

Kilty_2

Doesn't it depend on the scale of your self employment income etc?

eg if it's small, you can declare the part time job as your main source of income and be taxed PAYE on that?

This is something that might affect me quite soon so I'm interested

Savvy_Sue

If the income from your self-employment already takes you over your Personal Allowance, then the simplest thing to do IMO is to ask your employer for a P46. You won't be able to sign it to say that this is your only or main income, so that will flag to the employer that they need to deduct tax on ALL your earnings.

At the end of the tax year, on your tax return, there is space to declare both employed and self-employed earnings - at least there always used to be, and if you're not getting both bits, you can always ask for the bits you don't have. You'll then be able to work out if what you've paid in your employment reduces the amount you owe for your self-employment.

If your income from your self-employment is usually, on average, LESS than your income from employment, then you can either give in your P45 (but that's only worth doing if you have one for the current tax year), or ask for a P46. If you have the P46, you sign to say that this is your only or main employment. Employer then takes your Personal Allowance into account before deducting tax.

You still declare both employed and self-employed income on your tax return. Remember, in that situation, to put aside more for your eventual tax bill, because if you earn over your PA in your employment, then you'll be due to pay tax on ALL of your self-employment.

I'm ignoring any issues about what you can off for your expenses in self-employment, just sketching the basic outlines, but hope that helps.

TurnaroundSue

I am employed on a part time basis and also self employed. I pay tax and NI contributions through my employer and on my tax return put the figure which shows on my P45 from the IR at year end and then list separately my figures from my self employment. As the moment, I am running at a loss on my business as it is in its infancy so my tax return has shown a nil balance of tax to pay (and I can also carry on any losses to the next year). Hope this helps and good luck with your business venture.

Savvy_Sue

TurnaroundSue wrote:

and on my tax return put the figure which shows on my P45 from the IR at year end and then list separately my figures from my self employment.

Just a minor correction, unless your employer terminates your employment at the end of every tax year, you mean your P60 - I'm sure that's what you meant, but just to avoid any confusion!

A P45 is what your employer gives you at the END of any period of employment, and you give it to your new employer.

A P46 is what you give your employer if you don't have a P45, or if you have more than one job, but you only need it at the START of any period of employment.

A P60 is the form your employer gives you at the end of every tax year, showing what they know you've earned this tax year, and what tax and NI they've deducted.

TurnaroundSue

Savvy_Sue wrote:

Just a minor correction, unless your employer terminates your employment at the end of every tax year, you mean your P60 - I'm sure that's what you meant, but just to avoid any confusion!

A P45 is what your employer gives you at the END of any period of employment, and you give it to your new employer.

A P46 is what you give your employer if you don't have a P45, or if you have more than one job, but you only need it at the START of any period of employment.

A P60 is the form your employer gives you at the end of every tax year, showing what they know you've earned this tax year, and what tax and NI they've deducted.

Yes thanks for that Savvy Sue - I did indeed mean a P60 - sorry, was late at night and I was tired