Employed and also self employed tax/ni??

bluenitsuj

Please help. So confused.
I am self employed, registered and pay class 2 nic. I have just been offered a part time job - 20 hours a week, with a choice of being employed by the company, or self employed.

This is where I get confused. I dont mind what I do as self employment gives me the flexibility, but I am confused with the tax and ni contributions.

Is it cheaper for me to do it all self employed, or be both employed and self employed. I beleive that if I do both, I will be paying both class 2 and class 4 nic on my self employment, AND class 1 as employed.

Also, how easy is it to do your own tax returns ( I do not want to use an Accountant as it costs me enough for my business ).

dtaylor84

First of all, you may not have a choice: http://www.hmrc.gov.uk/employment-status/

Also, if you're already self-employed, you will already need to complete a tax return. Having PAYE earnings won't make that much harder (just a few extra boxes to fill in with the details from your P60, basically).

CLAPTON

Ignoring whether your employer can choose whether you are employed or self employed


the differences from the tax/NI point of view

NI: as employed you pay 12% class 1 but you get a allowance of 149 per week whereas if SE you pay 9% on all your new earnings if you have already exceeded your allowance

Tax is the same 20% or 40% depending, except that maybe you can claim some allowable expenses if SE

John_Pierpoint

bluenitsuj wrote: »

Also, how easy is it to do your own tax returns ( I do not want to use an Accountant as it costs me enough for my business ).

Register to use the on-line system, then you can play with it as many times as you like until you get it error free and submit it.

Do you know anyone else experienced in your line of work; the accountants on here will give you some pointers, but it is your judgement, knowing the complexity of your trade, to decide if professional help is cost effective.