Consultancy Work & Tax/NI

jambon79

Hi there, thanks in advance for reading. I have had a scour of the forums and the web looking for answers to this but thought I would put it to the great minds that are out there to see if I am right/wrong and provide some clarity.

I am a primary school teacher employed full time by the local authority where I live. I have recently taken on some consultancy work for a university that involved me working abroad in an advisory capacity for a short time.

From what I understand, this would be classed as a second job and therefore I would need to register with HMRC.

It is likely that I will have further follow up work later in the year. The payments I receive will come direct from the university and will total less than £5k per year. This will keep my income tax liability in the lower bracket as I won't earn enough to go in to the higher threshold.

Am I right in thinking I will be liable for 20% income tax on the earnings from the consultancy role?

Also when it comes to NI would I not have to pay any as the earnings are less than the equivilent of £153 per week?

Do I need to look at getting an accountant or is it manageable myself?

Thanks in advance

jambon79

It will be on a self-employed basis, I am having to invoice the University for the work I have just completed.

jambon79

Thanks for that.

Would I be required to pay a whole year of Class 2 contributions even though I will have only worked for two weeks out of the year?

Sorry to bombard with questions :A

CLAPTON

jambon79 wrote: »

Thanks for that.

Would I be required to pay a whole year of Class 2 contributions even though I will have only worked for two weeks out of the year?

Sorry to bombard with questions :A

you need to apply to small earning exemption from NI so you would pay nothing

chrisbur

You would need to apply for a Certificate of Small Earnings Exception

http://www.hmrc.gov.uk/forms/cf10.pdf

jambon79

Thanks for the replies, that SEE looks like it would fit nicely as the earnings will likely be below the thresholds.

Now for some more random questions;

- I would still pay tax in the UK even though the work was abroad?
- I worked from 2nd April 2014 to 5th April 2014 which was the last tax year but I won't be paid until this tax year. Would the self-assessment be 13-14 or 14-15?