Help with WTC

feygan

I am currently self employed as a sole trader who is also in receipt of WTC. I'm wanting to join the TA in my spare time but unsure how this will work financially.

Obviously my WTC is all based on my previous years income after deductions etc. However my TA job would be paying me a monthly wage on a PAYE system.

With that in mind will I need to include my TA net pay in my tax return?
Do I just notify the WTC office of how much extra per month I am now earning?
Will my TA pay be taxed at a higher rate as like a second job for someone with two PAYE jobs?

Thanks in advance for any help as I'm somewhat confused how to go about this being two separate income methods

zagfles

Yes you'll need to include your pay on your tax return and it will affect your tax credits (though there is a £5k disregard for increases - so maybe not till next year).

Not sure how it'll be taxed, you might get the full tax allowance in your PAYE earnings and then have to pay more tax on your self employed earnings, as you'll have less of/no allowance left. Try the "cutting tax" forum they are usually good with this sort of thing.

jetplane

There is a place on your self assessment to enter your PAYE gross amount and tax paid. The calculation then takes this into account when calculating tax.

Whether you use your tax code or BR on your PAYE you get the same tax allowance for the year.

feygan

jetplane wrote: »

There is a place on your self assessment to enter your PAYE gross amount and tax paid. The calculation then takes this into account when calculating tax.

Whether you use your tax code or BR on your PAYE you get the same tax allowance for the year.

Thanks for the info. Does this mean I will also have a section on my WTC form for my net PAYE amount? They will then add that to my total profit and calculate how much my new WTC payments will be?

jetplane

Yes the Tax Credit form has seperate sections for PAYE / SAE / pensions and other income.

Icequeen99

feygan wrote: »

Thanks for the info. Does this mean I will also have a section on my WTC form for my net PAYE amount? They will then add that to my total profit and calculate how much my new WTC payments will be?

It isn't net PAYE for tax credits it is gross income (before tax and NI are deducted)

IQ

jetplane

Yes, sorry I missed the net, it is gross PAYE