Is Extra Income Really Possible?

Tazni

Another potential idea could be Busking.... If you have a talent to show off some buskers can earn £20+ an hour if you can entertain people!

(Always best to check if you need a busking licence, some councils enforce them where some don't have them!)

shmeeko69

southerndave wrote: »

Thanks for the ideas, keep 'em coming!

Feed a hungry market. Join the various affiliate programs including Affiliate Window, Amazon, Commission Junction........... Look for products that you have a genuine interest in and can easily write about (min. 300 words), use a keyword tool to check for competition (choose either new or products with low competition) and get writing.

The key is in the products you promote and the competition. If you get this part right then, it will make a big difference to your success and you should always aim for page one on Google for the relevant keyword phrase and not forgetting your affiliate links in the blog article.

abailey54

The problem I have with moving forward with any of the extra-income ideas is the amount of tax that you have to pay if you already have a full-time income (sorry to be negative).

I've looked briefly at how it works being self-employed as a second income but very quickly get confused as there's lots of info about second jobs and self-employment, but not about if self-employment is your second income - does anyone have any useful links about this?

shmeeko69

abailey54 wrote: »

The problem I have with moving forward with any of the extra-income ideas is the amount of tax that you have to pay if you already have a full-time income (sorry to be negative).

I've looked briefly at how it works being self-employed as a second income but very quickly get confused as there's lots of info about second jobs and self-employment, but not about if self-employment is your second income - does anyone have any useful links about this?

Try not to put barriers in the way before you start on your IM journey would be helpful. If you're not sure about it then, simply leave 30% aside of what you earn from your online endeavours and that way you'll have the money when the taxman comes calling.

southerndave

Blimey, a question I might be able to help with. I have been both self-employed and employed and mixed both. It is simple to do both. Decided if your employment is primary or self-employment is primary. Register with the tax office as self-employed, you'll get a tax reference number. Use this for your self-employed work.

Keep simple, accurate records of your self-employed earnings. Deduct your own tax at a flat rate of at least 22%. Put it aside in a bank account. You will also need to pay Class 2 national insurance stamps regardless. Contact the NI office and they will set this up as an automatic direct debit every six months OR you can pay it at the Post Office every six months, up to you. It's not much at a flat rate.

At the end of the year you'll need to complete a self-assessment form. I use a local account to whom I give the form, my PAYE slips and P60, my self-employed accounts (a receipt book and receipts) and let her do the work! I pay her between £70 and £100 and its all done. I pay no extra tax and often get rebates, depending on what I have earned. The only thing it has affected has been Tax Credits, but I so far have earned more than I have lost from them.

If self-employment is your main thing, you can still do PAYE work but you'll pay full rate (22%) tax on the BR1 emergency code all year instead. When you do your books up, the PAYE is treated like earnings and the tax paid taken into account of your total bill. It sounds more complex than it is, but it is fairly simple. Even completing self assessment if perfectly possible, I did for a while, but my accountant lady knows so much more about allowances and the like, so reducing how much the grubby taxman gets to keep and waste on MPs expenses! I'd rather pay her £100 to save £100 going to the government, but that's me!

abailey54

southerndave wrote: »

Blimey, a question I might be able to help with. I have been both self-employed and employed and mixed both. It is simple to do both. Decided if your employment is primary or self-employment is primary. Register with the tax office as self-employed, you'll get a tax reference number. Use this for your self-employed work.

Keep simple, accurate records of your self-employed earnings. Deduct your own tax at a flat rate of at least 22%. Put it aside in a bank account. You will also need to pay Class 2 national insurance stamps regardless. Contact the NI office and they will set this up as an automatic direct debit every six months OR you can pay it at the Post Office every six months, up to you. It's not much at a flat rate.

At the end of the year you'll need to complete a self-assessment form. I use a local account to whom I give the form, my PAYE slips and P60, my self-employed accounts (a receipt book and receipts) and let her do the work! I pay her between £70 and £100 and its all done. I pay no extra tax and often get rebates, depending on what I have earned. The only thing it has affected has been Tax Credits, but I so far have earned more than I have lost from them.

If self-employment is your main thing, you can still do PAYE work but you'll pay full rate (22%) tax on the BR1 emergency code all year instead. When you do your books up, the PAYE is treated like earnings and the tax paid taken into account of your total bill. It sounds more complex than it is, but it is fairly simple. Even completing self assessment if perfectly possible, I did for a while, but my accountant lady knows so much more about allowances and the like, so reducing how much the grubby taxman gets to keep and waste on MPs expenses! I'd rather pay her £100 to save £100 going to the government, but that's me!

Thanks Southern Dave, I thought I'd be paying 50%, but having read another thread and your post I realise I'd have to earn alot (which I won't) to have to pay this - good news :T