Tax on my first job if i additionally start a business

Allymacg

Hi All
my husband is currently working full time. He is looking to start up - along side his job- his own business. His current employer says this will increase his tax on his main job. Is it classed exactly the same as a same job? Can anyone advise on this.

nomunnofun

It will have no effect whatsoever on the tax payable at his main job if, as is likely, your husband would want his personal allowances utilised at this source of income. Perhaps his employer is not overly keen on your husband doing additional work elsewhere?

CLAPTON

his current job will be unaffected

for his business he will have to fill in a self assessment form (or online) and will be taxed accordingly on the total income.

if he starts in this tax year (i.e. before April 2013) then he will need to file and pay tax and NI for this year by the end of January 2014

Auntie-Dolly

I'm employed & self employed and my employment is taxed at BR with no allowance. I think this is standard in this situation.

Allymacg

Auntie-Dolly wrote: »

I'm employed & self employed and my employment is taxed at BR with no allowance. I think this is standard in this situation.

Sorry to be dumb - BR?

Allymacg

As I will also work with my husband would it be easier -ie finiancially beneficial - if the business was registered in my name? I do not currently work so would not have the problem of using taxable allowances? anyone advise?

agrinnall

Allymacg wrote: »

Sorry to be dumb - BR?

BR = Basic Rate

http://www.hmrc.gov.uk/incometax/codes-basics.htm

What that means is that all the income to which that tax code applies is taxed at the basic rate - 20%, 40% or 50% (to become 45%) depending on how much is earned.

If your husband's PAYE job pays more than his personal allowance then the simplest thing is to keep it on that job and just have BR allocated to the self-employed earnings.

Dazed_and_confused

BR does equal basic rate but means all income would be taxed at 20% (the basic rate). Tax would not be deducted at 40 or 45/50% even if the salary was a million pounds. You are confusing BR and 0T.

nomunnofun

agrinnall wrote: »

BR = Basic Rate

http://www.hmrc.gov.uk/incometax/codes-basics.htm

What that means is that all the income to which that tax code applies is taxed at the basic rate - 20%, 40% or 50% (to become 45%) depending on how much is earned.

.

At the risk of being pedantic, a BR code taxes all of the income at just that, the basic rate of 20%, regardless of the income being 10000 or 100000. A code of 0T, however, will apply basic rate tax, then 40%, then 50% as the income determines. But I am sure that you know that.

Sorry, dazed and confused, beat me to it!

LittleVoice

Auntie-Dolly wrote: »

I'm employed & self employed and my employment is taxed at BR with no allowance. I think this is standard in this situation.

Standard? Far from it.

As others have suggested, it is normal for the personal tax allowance to be set against the PAYE income and tax on the self-employed profit to be dealt with by means of an annual self-assessment process.

LittleVoice

Allymacg wrote: »

As I will also work with my husband would it be easier -ie finiancially beneficial - if the business was registered in my name? I do not currently work so would not have the problem of using taxable allowances? anyone advise?

What do you mean by the business being registered.

If it is a limited company, then it is the company which is registered at Companies House.

If you mean about registering as self-employed, then if your husband could allow you to take all the profit and your personal tax allowance could be set against it.

Do you have savings earning taxed or untaxed interest?

Is your husband a higher rate tax payer?