Working self employed PT alongside FT job - Tax query

Monkey_Joe

Hi,

I have a FT job which I earn £34k pa for and get taxed on this automatically every month.

I have been offered a part-time cash in hand job for the evenings, fixing computers. Earn roughly £1k per month.

I will need to declare this extra income with HRMC, so I have some questions:

- How do I go about doing this? How will my tax be calculated? Combined or separate.

- Do my current employers have to know? The editing job is technically a hobby that I'm getting paid for but I don't want to take any risks of rocking the boat by telling my employer.

I assume my tax code will change, but will my employers be notified?

Thanks in advance.

Notmyrealname

Your tax code remains unchanged.

You complete a self assessment every year. There will be a page for your S/E income/expenses and one for your PAYE income and on that a box to put down tax you've paid via PAYE.

The income from PAYE and profit/loss from S/E are added together and your tax bill worked out. What you've paid through PAYE is deducted from this and you are sent a bill or a refund as appropriate.

diamonds

more importantly....40% tax applies £34,371-£150,000 of income, that 1000K will be 400 less not 200 less as your main job currently (poss) is.

Your tax code will change if the new p/t job is PAYE like your f/t job & not SelfEmployed^ as Notmyrealname states above, none of it will apply.

princessdon

your tax code will not change and you may go into the 40% (£42k or so).

But the best advice is on the cutting tax board - where they can advise on tax reduction schemes for businesses as there may be things you are not considering that can reduce your bill.