Working two part-time jobs

saxonrosecliff

I'm just after some basic advice/tips!

I'm currently unemployed and about a month ago I applied for an Admin Assistant job. I've got an interview on Monday for it but the job is only 25 hours per week (I applied for it because it is virtually the same as my previous job but in a different company - I'm on the work programme and was fed up at the time and thought being as I have the right experience I'd be in with a good chance and just wanted to get off the work programme!).

I think I can survive on 25 hours pay but I would like to look for another job to make a full-time job. I'm not bothered what - I've been looking at cleaning, delivering leaflets, mystery shopping etc.

I've never had two jobs at the same time before and have got myself a bit confused. The main job is PAYE but the second job may well be self employed. How does this work when it comes to tax/NI etc? If anyone has ever done this and knows the advantages/disadvantages I'd love to know them.

PlutoinCapricorn

Would your personal allowance of £8,105 be used up in the part time job?

All income from self employment will be paid gross, so it is best to set 20% aside for income tax. You must pay £2.65 per week Class 2 National Insurance unless you claim exemption on the grounds of low self employment earnings i.e. you expect to bring in under £5, 595.

You would need to register as a sole trader, and complete a self assessment tax return each year. The first one would be due by the end of January 2014.

Have a look through https://www.businesslink.gov.uk and HMRC's website.

Many people do freelance work alongside or on top of PAYE work. Good luck with the job!

LittleVoice

If your second job is on a self-employed basis then you will need to keep accounts of your income and expenses so that you can complete a tax return. Set aside an amount each week or month to enable you to pay the tax when it is due.

You would need to register with HMRC as self-employed and they will arrange for you to pay NI. Some (=£2.65/week, Class 2) is done through the year by direct debiting a current account. Class 4 is paid on profits. Look for all NI rates here - http://www.hmrc.gov.uk/rates/nic.htm

saxonrosecliff

Thank you both of you. That's what I wanted to know. It fills me with dread having to deal with the Inland Revenue after an horrendous experience with tax credits but I need to get off the work programme before I go insane!

PlutoinCapricorn

If you have never been self employed before, or had to complete a tax return, there will be some research and understanding to do.
You can file the tax returns online, which is the easiest option, and relatively painless after the first one.

You only register as self employed once you have some actual work, not in advance on the offchance. There is also a Class 4 NI levy on profits, but you may not earn enough to be liable for that.

HMRC do free courses on tax returns, records and expenses so take advantage of that if you can.

the-mango

PlutoinCapricorn wrote: »

HMRC do free courses on tax returns, records and expenses so take advantage of that if you can.

http://www.hmrc.gov.uk/webinars/

saxonrosecliff

the-mango wrote: »

http://www.hmrc.gov.uk/webinars/

Thank you - I've bookmarked that page so should I need it I can find it!