Second Income Questions

popski33

Hello Everyone,

I am currently employed full time and pay tax and NI through my employer, company A.

In my spare time the last few weeks I have been doing a second job part time by cleaning some commercial premises in my local area. It has only been a few hours here and there and minimal amounts of money and the client has jut been paying me in cash. This is job B.

The client owns several properties both domestic and commercial in the area and has offered me extra work in cleaning these places. I am keen for the extra income (who isn't!) so I have accepted the extra work.

My question is the tax implications of this second job. I will still be working for company A full time, and working job B in my spare time. I do not want company A finding out about my second income as although it isn't against my contract, it's frowned upon and I don't want a hard time from them. I recognise I might be breaking the law if I jut receive cash payments from job B so I want to do it legally.

I was thinking of setting job B as a ltd company? That way I can issue invoices to the client which he will pay. But I don't know what to do about tax.. Can i pay VAT under the ltd company and take out any profits where I see fit?

sweetilemon

Dont worry, job A wont find out unless you tell them. You get the same tax free allowance regardless of how many jobs you have although the allowance can be split between both your jobs if you wish. Sounds like your self employed for job B? For example using your own cleaning equiptment/products? If so, phone HMRC, register as self employed and you can fill out a tax return each year

quinechinoise

Sounds like you've been self-employed for a few weeks as a sole trader.

Best phone HMRC tomorrow for advice and they'll get you sorted.

From this page: http://search2.hmrc.gov.uk/kb5/hmrc/contactus/view.page?record=1JNuf06zzrM
Newly self-employed helpline = 0845 915 4515

You don't need to tell job A (assuming moonlighting isn't an issue in your contract). You can stick the details on your annual tax return and pay the tax/additional NI in one go, without it affecting PAYE. You could consider registering an exemption for class 2 NI and not registering for VAT, to simplify things - assuming earnings are (relatively) low. You don't need to be a registered company to present someone with a bill. You can't spend all your profits as you see fit - you'll need to reserve some of the cash to pay your tax bill.