Employed & Self Employed Tax

John87

Hi everyone, I hope I have put this in the right area.

I just wanted some advice regarding working Full time, and also freelancing on the side.

I have been offered a job which is much lower paid than my current role, but is in a field I want to do. On the side I am a web developer who has just started out, but I am getting work via a contact. Although my work is slow at the moment it may well pick up after a few months and seen as I am taking a low paid job, I will need this to top up my pay.

What I want to know is, is there a a better way for me to go about not getting taxed an insane amount on my second income? I will get taxed from the full time job should I choose to take it, but I will get taxed as a second job for my freelancing?

Would I be better off trying to go self employed rather than full time employed, and getting the full time contracted so that I am not working two jobs, but just getting taxed for one set of income?

Thanks for your help,

John

McKneff

To be honest, you wont get taxed any more than the rest of us no matter how many jobs you do. (apart from going into the 40% tax bracket.



After your tax allowance of £8105 you will pay 20% tax.

Obviously, there are certain things when self employed you can offset but it's the same for us all.

John87

So if I understand correctly you are saying once I have gone over the threshold, ill only get taxed 20% of my earnings all together? I wont get taxed twice?

Sorry if I have misunderstood, all confusing to me lol.

John87

For example if my monthly earnings from the full time job looked like this:

Net wage: £763 a month

then say I earned £100 extra a month from my freelancing to make it £863 would that be the way the tax would be calculated from, in one lump amount of total earnings?

McKneff

You would pay tax as normal on your employed pay.

Then do a self assement for your freelancing once a year, which would be less any expenses and pay 20% tax on your profit.

But no, you don't pay tax twice.

John87

Thanks for your help, much appreciated.