Working a second job- dealing with NI?

textbook

If you are already doing a PAYEE job. £18,000. But you want to do a second job. How does this affect NI contributions and your final pension? PAYEE is class1 and sole trader self employed is class 2. If you earned £100 a week how much would you have to pay in NI and what would you have to do to make sure your pension payments have been done?

Darksparkle

If you earn £100 per week self employed you'd pay no Class 2 NIC

https://www.gov.uk/self-employed-national-insurance-rates

textbook

Darksparkle wrote: »

If you earn £100 per week self employed you'd pay no Class 2 NIC

https://www.gov.uk/self-employed-national-insurance-rates

But this is a second job! Wouldn't it just be added to the income I earn in my first job?


If what you say is true, that would be excellent, I could work a bit and not have to worry about it affecting my NI pension.


I would have to pay some tax though, right?

CLAPTON

textbook wrote: »

But this is a second job! Wouldn't it just be added to the income I earn in my first job?


If what you say is true, that would be excellent, I could work a bit and not have to worry about it affecting my NI pension.


I would have to pay some tax though, right?

tax is based on your yearly total income , so you would pay tax on your SE income just as if it were a pay rise in your first job i.e. you would pay 20% of your profits

NI is calculated on each job separately : so it is perfectly possible to pay NI on your main job and nothing on your second job (or SE)

textbook

I guess keep all the receipts for things related to the business- e.g. buying a van, petrol receipts and equipment. Then count up how much cash you have earned and then fill in the tax return form and send it off. It shouldn't be too difficult, should it? Shouldn't need an accountant? £100 a week is £20 tax a week. if it dropped to £40 a week then just £8 a week and this shouldn't affect your pension as no NI needed to be paid.


Probably if you get a £3000 van to start with that will mean you won't need to pay any tax anyhow, as that will be written off against the profits.


When and how would I keep a record of all this? When do you contact or send the info to HMRC?

CLAPTON

once you start self employment, you need to contact HMRC and tell them.

you then need to make a return and pay tax due for year 2015-16 before end of January 2017

some-one else will tell you how you deal with the cost of the van as I don't know whether that can be written off against profits