Tax on second job - NI & SL etc...

michaelsft

Hi all, I wonder if anyone could advise on the following, I received my P60 for tax year ending 5 April 2016 today and it has the following figures:

(Tax code 1054L)
Pay: £22,800.38
Tax deducted: £2450.20
NI contributions: £1768.35

It mentioned nothing of Student Loan repayments (Plan 1) or anything else like Pension Schemes or Health Insurance etc

Anyway, for the first time ever I have earned money being self employed, I have invoiced and received exactly £7,260.00 this tax year and have no deductibles I can put through. I plan to fill in a self assessment form and with that in mind I wonder if any kind soul you perhaps be able to answer a few questions I have:

• Can I expect to pay more NI and SL on this extra cash from my second income?
• Is there any other information I will need to fill in my SA? I am all registered and ready to go on the 6th April because I need to get my payment out of the way asap.
• While it’s probably impossible to be exact, would anymore be able to offer a ballpark figure as to how much tax I will be ask to pay? Something rough that I can work towards.
  

Many thanks for reading, I know the usual response is often to be told to ring up HMRC or do more research but I hope my questions are broad enough for some helpful advice from someone nice!

Michael

Darksparkle

Your P60 should have a box regarding student loan deductions. Has your employer been deducting them?

Any other benefits (eg health insurance) will be on your P11d which you should get by July.

You'll need to pay class 2 NIC on the self employed income - https://www.gov.uk/self-employed-national-insurance-rates

You'll need to pay student loan on your self employed income.

How much tax etc needs to be paid will depend on your total taxable income for the year. You'll need your P11d first.

Any other taxable income? Eg interest? Rental?

Details of all taxable income will be needed when it comes to doing your return

michaelsft

I see the SL figure now, it was hidden away there from me! Student Loan: £484

I'm not sure what you mean by all taxable income, I have earned a grand total of £30,060.38 this year - do you mean this minus the tax free allowance and any amounts I have had deducted like Health (£5 a month) and Pension (£90 a month roughly)?

If I put £2,000 to one side do you think that would be enough or am I kidding myself? I honestly don't have a clue and working it out seems impossible.

I see Class 2 NICs is £145.60 for the year which seems reasonable but not sure how to work out Income Tax and Student Loan - are they both percentages of my income? Considering I have used up my allowance on my main job I would guess that Income Tax would be 20% of these extra earnings (£1,452) and Student Loan looks like 9% of these earnings on top (£653.40) - making a total of £2,251 - does this seem accurate?

Darksparkle

michaelsft wrote: »

I see the SL figure now, it was hidden away there from me! Student Loan: £484

I'm not sure what you mean by all taxable income, I have earned a grand total of £30,060.38 this year - do you mean this minus the tax free allowance and any amounts I have had deducted like Health (£5 a month) and Pension (£90 a month roughly)?

If I put £2,000 to one side do you think that would be enough or am I kidding myself? I honestly don't have a clue and working it out seems impossible.

I see Class 2 NICs is £145.60 for the year which seems reasonable but not sure how to work out Income Tax and Student Loan - are they both percentages of my income? Considering I have used up my allowance on my main job I would guess that Income Tax would be 20% of these extra earnings (£1,452) and Student Loan looks like 9% of these earnings on top (£653.40) - making a total of £2,251 - does this seem accurate?

If you pay into your pension before tax is deducted then it's already taken into account on your P60 and you don't need to deduct it.

If it's taken after tax or you pay into it personally then you'll need account for that.

You mentioned health insurance. Is this provided by your employer? Or is it just something you choose to do personally?

If through your employer you should get a P11d that tells you the value of the benefit. That is then added to your income. If something you are paying personally then it doesn't come into your tax calculations.

I also mentioned other types of taxable interest like interest from savings and investments or rental income. Do you have any other taxable income? Or just your employment and self employment.

michaelsft

Ok, I think I understand! I checked my last P11D and it only listed Health (total amount was £52.00 cost to me) - apart from that it was blank.

I have looked at my payslips and Paye, NIC, Student Loan, Pension, Healthcare all come out of my basic before I get paid. I don't do anything out side of work like add in to another pension or health scheme, it's all through work and I have no other income sources except the one mentioned for the amount of £7,260

Darksparkle

michaelsft wrote: »

Ok, I think I understand! I checked my last P11D and it only listed Health (total amount was £52.00 cost to me) - apart from that it was blank.

I have looked at my payslips and Paye, NIC, Student Loan, Pension, Healthcare all come out of my basic before I get paid. I don't do anything out side of work like add in to another pension or health scheme, it's all through work and I have no other income sources except the one mentioned for the amount of £7,260

You'll need this year's P11d before you can do your tax return.

So from what you've said:
Employment £22,800
Benefit in Kind £52
Self Employment £7,260

Total Income £30,112

Less Personal Allowance £10,600

Tax Due on £19,512 @ 20% = £3902.40
Less Tax Deducted = £2450.20
Tax Still Due = £1452.20

Class 2 NIC Due = £145.60

Student Loan £30,112 - Threshold £17,335
12,777 x 9% = £1149.93
Less SL Deducted £484
SL Due £665.93

Total Tax, NI and SL = £2263.73

michaelsft

Thank you for all your help, you have explained so much to me and I really appreciate it. I'll save £2,300 for my tax bill and at least I know it'll be pretty close when I come to do it.

Kindest regards
Michael