Doing private work - advice required

Burnley_Lad

I will be leaving my current employment on Friday 22nd March, and starting my new employment on Monday 25th March.

I have been doing some extra work at my current place of employment for a colleague since last November, for which I am paid additionally at my normal hourly rate of pay from a separate fund, and this appears on my wage slip as 'overtime', and of course I pay the appropriate rate of tax and national insurance.

My colleague has said that she would like me to continue doing this work after I have left, and I am happy to do so, but I am unsure as to the tax and national insurance implications.

I am aware that I will need to disclose me doing this extra work to my new employer, which I will be doing, and assuming they are okay with it, I will continue to do it. This work is done in my own home, and in the evenings and weekends. It normally amounts to a maximum of 25 hours per month.

I have been advised that the best way for me to do this is that I would do the work each month, and then submit an invoice at the end of each month for the work I have done. I would then receive a cheque, but then I would need to sort out the appropriate tax and national insurance.

This is the point that I am unsure about - how exactly would I do that?

This piece of work is expected to end in June 2013, so a rough estimation of how much extra I would receive in the 2013/2014 tax year would be £600.

Thank you for any advice!

Burnley_Lad

thank you very much for your reply.