Tax on 2nd job - expectations!

michaelsft

Hi all, I am about to fill in Self Assessment for the first time, I recently took some part time work on and I need to declare it - I expect to earn £6,550 but I have only earned £4,550 at the minute.

Main Job - all taxes being paid by employer
Yearly Salary: £21,315 - £23,315 (depending on bonus)
Tax code: 1054L

Secondary Job (for tax year Apr 2015 to Apr 2016)
Total expected to invoice: £6,550.00

Assuming I have no expenses, how much should I expect to pay in tax? Will I get one big bill at the end of the financial year? Will I have ot pay NI contributions or student loan repayments (old agreement from 2000) considering I already do that with my main job? Is there an amount I can earn that doesn't require filling in a Self Assessment form?

Thanks!
Michael

agrinnall

Assuming the extra earnings are from self-employed work then you'll pay 20% tax on the full amount earned (unless you have any expenses you can offset) so it'll be £1310. I'm not sure whether that's enough to push you into having to pay NI contributions, and student loan repayments are outside my personal experience (but I suspect you will have to pay them as well as the tax).

I believe payment for 2015-6 will be due on 31st January 2017 - you might be able to have it taken by amending your tax code for 2017-8.

I'd suggest that you have a good look through the links on this page and if you're still unsure come back and ask more questions.

https://www.gov.uk/topic/business-tax/self-employed

sheramber

michaelsft wrote: »

Hi all, I am about to fill in Self Assessment for the first time, I recently took some part time work on and I need to declare it - I expect to earn £6,550 but I have only earned £4,550 at the minute.

Main Job - all taxes being paid by employer
Yearly Salary: £21,315 - £23,315 (depending on bonus)
Tax code: 1054L

Secondary Job (for tax year Apr 2015 to Apr 2016)
Total expected to invoice: £6,550.00

Assuming I have no expenses, how much should I expect to pay in tax? Will I get one big bill at the end of the financial year? Will I have ot pay NI contributions or student loan repayments (old agreement from 2000) considering I already do that with my main job? Is there an amount I can earn that doesn't require filling in a Self Assessment form?

Thanks!
Michael

If you are completing a return now it will be for your income from April 2014 to April 2015.

You will declare your second income on next year's return which will be issued after 5 April 2016

michaelsft

That's a great point that I foolishly missed, I'll fill it in (as I have been requested to) with zero amounts this year and put money to one side for next year.

If anyone has any advice on NI/Student Loan payments or the other questions I asked then that would be great. It would be awesome to have a ball park figure to aim towards - I was thinking it would be about £2k on £6,550 earnings with my tax code - though it would be awesome if it were lower!

chrisbur

It would appear that your second income is through self employment so national insurance will be at class 2 and class 4 if you are liable.
Class 2 is payable if you have profits of £5965 or more and is £2.80 a week; class 4 is 9% of profits over £8060 a year.
https://www.gov.uk/self-employed-national-insurance-rates

Your turnover is not a lot over the point that class 2 NI is due; are you sure that you have no expenses to set against this to reduce profit. I would be surprised if anyone who is self employed had no expenses at all.

When you do your self assessment form you will complete an earnings section for your PAYE pay and tax. Certainly for some student loans possibly all of them a total loan repayment due figure is calculated based on your total employed and self employed earnings and the amount paid through PAYE is deducted to get what is still owed. I do not know for certain if this happens with your type of loan but suspect it probably will.

TheCyclingProgrammer

Assuming you recently registered as self employed it's a bit strange you are being asked to complete a tax return previous tax year. Did you actually receive a notice to file a tax return for 2014/15? When did you register as self employed?