being employed & self employed

nadineyyy

Hey,

As of April next year I will be employed and self employed at the same time. My starting salary in my employmemt will be £12k and over the course of the following 2 years will raise to approx £18K.

Whilst I am employed I will be making £4800 per annum through my self employment. I understand I will need to do a self assesment for my self employment tax and that my personal allowance will be used for my employment but my questions are : what percentage should I be putting by for tax and ni?? And will I have to make a payment on account?? Also will my increase in employmet salary have impact on the amount of tax/no I pay on my self emplopment salary?

Thanks.

CKhalvashi

nadineyyy wrote: »

Hey,

As of April next year I will be employed and self employed at the same time. My starting salary in my employmemt will be £12k and over the course of the following 2 years will raise to approx £18K.

Whilst I am employed I will be making £4800 per annum through my self employment. I understand I will need to do a self assesment for my self employment tax and that my personal allowance will be used for my employment but my questions are : what percentage should I be putting by for tax and ni?? And will I have to make a payment on account?? Also will my increase in employmet salary have impact on the amount of tax/no I pay on my self emplopment salary?

Thanks.

It will completely depend on your other income.

30% if you're on 20%
50% if you're on 40%

is a general rule, as you get paid a bonus at the end of the year.

CK

John_Pierpoint

If your [self employment] profits are expected to be less than £5,595 you may not have to pay Class 2 National Insurance contributions.
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/NationalInsurance/IntroductiontoNationalInsurance/DG_190048
But you have to claim the exemption when you register for the weekly flat rate class 2 NI contributions. You should be sent the exemption claim form with your self employment "welcome" pack.

You get a "fools holiday" from tax until the self assessment tread mill catches up with you; the following January, after the end of the tax year. You have to pay the back tax plus money on account.
The tax year starts on the 6th of April, approximately the date of Christ's conception.

CLAPTON

with the figures you have given
your liability from self emplyment will be 20% tax on the 4,800
and assume you claim NI exemption there is no NI


you main salary does not impact your self employment tax/NI until you reach the 40% tax band (currently 42,475 net of any pension contributions)

grey_gym_sock

John_Pierpoint wrote: »

The tax year starts on the 6th of April, approximately the date of Christ's conception.

are you suggesting that HMRC are effectively the same organization who collected taxes for the roman empire, just renamed a few times?

John_Pierpoint

Probably morphed into the Roman Church at some point and collected tithes?
http://en.wikipedia.org/wiki/Tithe
After all medieval kings could not read and write in some cases - so tended to hire in the educated from the church.
After (some of) the Tudors fell out with Rome, alternative arrangements for managing education needed to be made:
http://en.wikipedia.org/wiki/Public_Schools_Act_1868

Then there were the lost days because of the faulty leap year calculation [But you cannot dodge taxes]:

http://en.wikipedia.org/wiki/Quarter_days

When I was at school there were still 12d to the shilling:
http://en.wikipedia.org/wiki/Denarius