Being self employed with two jobs - low earnings!

SophieJF

Hi there, would appreciate any advice!

Basically I'm self employed for two jobs. I've declared myself as on a low income, meaning I don't have to pay NI. However I am paying tax on my second job, which is emergency tax by the looks of things. All together I'd say I'm earning on average about £390 a month. I believe, though am not certain that I probably should pay NI (how much, will I get in trouble for not paying it before) and shouldn't be paying tax. Is this correct?

Bean_Counter

SophieJF wrote: »

However I am paying tax on my second job, which is emergency tax by the looks of things.

If you are self-employed, why is someone deducting tax from you? Do you get a pay slip? What do you do for a living?

SophieJF

Bean_Counter wrote: »

If you are self-employed, why is someone deducting tax from you? Do you get a pay slip? What do you do for a living?

That's a good point. One job as a receptionist I am officially self employed. The other as a waitress, I am classed as casual, however my wages go through "the books" kinda thing

LittleVoice

Who has decided that you are "officially" self-employed as a receptionist? Has HMRC agreed or is this a private arrangement between you and the organisation.

I am not questioning that you have told HMRC that you are doing this work (as your first post said you had declared your low income), but I do wonder whether they would actually accept that your situation is one of self-employment.

tlck9

I know my partner has to pay £2.10 a week NI regardless of the amount he earns, then on earnings he will pay a further "class" tax subject to his earnings as self employed - as this will pay out for incapacity benefit etc

This means that you still get full entitlement at the end of your working life, for every week you miss you miss out on a year's pension allocation so it is key to pay this, or ensure that you have a credit against your NI - check with the Self employment office

http://www.hmrc.gov.uk/startingup/taxgate.htm

As to tax, you shouldnt be paying any tax if you are classed as self employed to an employer unless you are CIS, so I would check this with your "employer"

You need to register with the Tax office stating the two jobs you have, this will mean that you will be sent a tax return each year, which outlines your earnings and your expenses incurred

If you have been paying Tax, and your earnings are lower than the threshold then on your tax return this would basically add up to a repayment of that tax,

eg if you are employed in one job and self employed in the other, the tax paid on one job could cover the overall tax you need to pay

Bean_Counter

I agree with LittleVoice, and to me it sounds as if you should be treated as an employee for both jobs.

To get back to your original point, you need to pay national insurance to get entitlement to some benefits, pensions etc.

Debt_Free_Chick

SophieJF wrote: »

Hi there, would appreciate any advice!

Basically I'm self employed for two jobs. I've declared myself as on a low income, meaning I don't have to pay NI. However I am paying tax on my second job, which is emergency tax by the looks of things.

In which case, this employer does not class you as self-employed. They have declared you as an employee and are taxing you under PAYE.

Are you registered as self employed with HMRC?