quick tax question

pretty_lady

Sorry if this has already been answered somewhere but I had spent a while searching and can't find the answer!

I have just started (last week) as self employed but am looking to get a part time job just to earn a bit of money. I haven't registered as self employed yet but know i have to do this in first 3 months. I expect my self employment earning to be v low (less than the threashold for NI). My question is if i get a part time job do I sign a P46 and if so do i put 'this is my only job' or that i have another job? I am not too sure if the effect this has on my tax.

Hope this makes sense and many thanks in advance.

monkeymax

pretty_lady wrote: »

Sorry if this has already been answered somewhere but I had spent a while searching and can't find the answer!

I have just started (last week) as self employed but am looking to get a part time job just to earn a bit of money. I haven't registered as self employed yet but know i have to do this in first 3 months. I expect my self employment earning to be v low (less than the threashold for NI). My question is if i get a part time job do I sign a P46 and if so do i put 'this is my only job' or that i have another job? I am not too sure if the effect this has on my tax.

Hope this makes sense and many thanks in advance.

Hi, it depends on the amount of income in your part time job. If it will take you over the threashold then fill in a P46. However, if you know the SE earnings you will get in the year you can write to your tax office and request that your SE earnings are coded into your tax code. This will give you the benefit of not oweing any tax next year. However this can only be done if you know definately what you'll earn SE. If you don't it could fluctuate and give rise to a tax bill.

Bean_Counter

pretty_lady wrote: »

do I sign a P46 and if so do i put 'this is my only job' or that i have another job?

I would request the P46 and tick part A to say this is my only job.

It might be splitting hairs, but the P46 refers to having another 'job' rather than another source of income, and I would say that your minor self-employed income does not count as a 'job.' That could of course be open to interpretation.

I would also ignore putting my self-employed earnings on the tax code as monkeymax suggested. Two reasons. Firstly keeping this seperate keeps it more simple. Secondly, including it and hence diminishing your tax code means that you are effectively paying tax on it throughout the year. Might as well wait and pay any tax when you have to and not before.

monkeymax

Bean_Counter wrote: »

I would request the P46 and tick part A to say this is my only job.

It might be splitting hairs, but the P46 refers to having another 'job' rather than another source of income, and I would say that your minor self-employed income does not count as a 'job.' That could of course be open to interpretation.

I would also ignore putting my self-employed earnings on the tax code as monkeymax suggested. Two reasons. Firstly keeping this seperate keeps it more simple. Secondly, including it and hence diminishing your tax code means that you are effectively paying tax on it throughout the year. Might as well wait and pay any tax when you have to and not before.

don't take this the wrong way bean, but some prefer to pay their tax bill monthly through their wage as apposed to a large bill at the end of the year. I agree your first step should be completing Form P46 and stating this job as your 'first job'. Depending on what you decide with your SE income you can write to your tax office and advise them of your income at any time... if thats what you want to do.

Bean_Counter

monkeymax wrote: »

but some prefer to pay their tax bill monthly through their wage as apposed to a large bill at the end of the year.

To each their own, of course.

At least pretty_lady can make up her own mind, or seek further advice.

pretty_lady

thanks very much guys - that's helped clear it up for me:D