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Working out tax for second job (self employed) SA
michaelsft
Posts: 69 Forumite
in Cutting tax
Hi, apologies if this is confusing or if there are good answers elsewhere (I would most appreciate being sent in the right direction if so!).
My current situation is a full time job at £21,350 /year and I recently completed some work on a part time and self employed basis. I raised two invoices for £2,000 and £2,350 and expect to raise a further invoice for £2,000 before April next year when I believe I will be required to fill a self assessment form. An aside, but interesting nonetheless, I am yet to request information from HMRC but I have received a letter telling me my circumstances have changed - can I assume the company I worked for self employed have informed HMRC on my behalf?
Regardless of that, I believe my current tax code is 1060L which allows no tax on earnings up to £10,600 and 20% thereafter for income tax - I do not have a payslip available at the moment to check but I recall there are other taxes also being taken off such as national insurance and my student loan (RP1).
Forgive the ramble but my question is, can I work out how much extra tax I will owe to HMRC based on earning £6,350 on top of my regular pay. Do I have to pay extra national insurance and student loan payments? Is it just 20% of the £6,350 since it won't push me over the £31,750 tax bracket? Should I account for as much as 30% of the £6,350?
Forgive my ignorance but it's playing on my mind and I can't seem to ever get through to the tax man on my phone so I'm hoping some nice person here can help me!
Thank you for reading
Michael
My current situation is a full time job at £21,350 /year and I recently completed some work on a part time and self employed basis. I raised two invoices for £2,000 and £2,350 and expect to raise a further invoice for £2,000 before April next year when I believe I will be required to fill a self assessment form. An aside, but interesting nonetheless, I am yet to request information from HMRC but I have received a letter telling me my circumstances have changed - can I assume the company I worked for self employed have informed HMRC on my behalf?
Regardless of that, I believe my current tax code is 1060L which allows no tax on earnings up to £10,600 and 20% thereafter for income tax - I do not have a payslip available at the moment to check but I recall there are other taxes also being taken off such as national insurance and my student loan (RP1).
Forgive the ramble but my question is, can I work out how much extra tax I will owe to HMRC based on earning £6,350 on top of my regular pay. Do I have to pay extra national insurance and student loan payments? Is it just 20% of the £6,350 since it won't push me over the £31,750 tax bracket? Should I account for as much as 30% of the £6,350?
Forgive my ignorance but it's playing on my mind and I can't seem to ever get through to the tax man on my phone so I'm hoping some nice person here can help me!
Thank you for reading
Michael
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