Sole Trader vs Part Time Employed

henrygregory

Good evening,
I am looking for some advice.
I have been working as a part time worker for several years. Some reliable companies have offered me part time work. I would be able to charge around £525 inc vat (obviously as I am sole trader I could not charge vat), so let's say it is £500 per day. I am not confident on how many days I would be guaranteed, so just looking at this as an idea at the moment.

My current part time work of 2 days per week gives me a monthly income after tax of £801.00

Can anyone who is a sole trader tell me how many days per week I would need to work at £500 per day before I would take home £800 per month?
I begin to get lost when reading about income tax, gross and net this and that. I know my current contributions come into play, I currently earn a good 6-7k under the 40% tax bracket annually.

Any help would be really appreciated.

podperson

I'm sorry, I'm a little confused here. Do you work another job as well which is where your 'current contributions' come in? If so are you 6-7k under the 40% range currently including your part time work or just on your other job?

henrygregory

podperson wrote: »

I'm sorry, I'm a little confused here. Do you work another job as well which is where your 'current contributions' come in? If so are you 6-7k under the 40% range currently including your part time work or just on your other job?

Hello, yes I work in another Job as well (sorry forgot to mention). So I work all week long 9-5. But I work for two different companies. I am 6-7k under the 40% range including both of my part time jobs together.

Suarez

Well your part time job takes up your personal allowance so it's simply Income from Self Employed minus allowable expenses = profit x 20%.

Assuming you will stay under the 40% threshold.

Edit : You may also have to pay NIC.

podperson

Ok, then since your personal allowance is I'm assumed all being used on your other job then you would pay tax on any self-employed work at the basic rate of 20%. So on the very basic level (assuming you just go into an office and work therefore don't really have any deductable expenses) then 2 days work at £500 a day would give you around the £800 per month net you're aiming for.
Although, as mentioned above check if you will need to pay any additional NI contributions.