Income tax ~ help needed!

Pomegranates

Hello all, I am terribly confused with my tax situation.

I work two part time jobs. The first job, I work Monday - Wednesday and have a contract so my tax is all done for me.

Three months ago I got another job, it's only on either/ both Thursday and Friday. I have no contract, but I receive £10 an hour. Week to week my hours vary.

I have looked online but have gotten very confused as how to calculate the tax for this second job, I don't even know where to start.

Any help would be hugely appreciated

LittleVoice

Pomegranates wrote: »

Hello all, I am terribly confused with my tax situation.

I work two part time jobs. The first job, I work Monday - Wednesday and have a contract so my tax is all done for me.

Three months ago I got another job, it's only on either/ both Thursday and Friday. I have no contract, but I receive £10 an hour. Week to week my hours vary.

I have looked online but have gotten very confused as how to calculate the tax for this second job, I don't even know where to start.

Any help would be hugely appreciated

What sort of work are you doing in the variable hours job?


Are they trying to say you are self-employed?

Pomegranates

It is a p/a job. My boss said she's never had contracts with her employees so yes I suppose it's self employed which I've never been before.

Carl31

You will need to do a self assessment at the end of this tax year, which is April 5th. It will be due either October 31st 2017 if you do a paper return, or 31st Jan 2018 if you do an electronic submission, so you have a while yet to sort yourself out. Basically you need to understand what your tax position is with your first job, which is PAYE, so you can make sure you set enough money aside to cover any tax due

The self assesment form should be self explanatory and guide you through what you need to do, but best to get your P60 or pay slips from your other job when you do it, as it will help

You should be issuing invoices to your customer which should tie in to the income you receive, as you may need to provide this to HMRC if you are audited

Darksparkle

The fact she doesn't do contracts doesn't necessarily mean you are self employed. Lots of employees have never seen their employment contract because the employer has failed to provide one.

Has she actually said you are employed or self employed? It's not a matter of choice but determined by the terms of the engagement.

Who decides how and when you work? Who decided the rate of pay? Do you provide your own tools? Can you send a substitute if you are unable to attend? Do you invoice the company?

TBagpuss

As Darksparkle says, just becuase you don't have a contract doesn't necessarily mean that you are not an employee.
This (http://www.litrg.org.uk/tax-guides/self-employment/am-i-employed-self-employed-both-or-neither ) may help you workl out whether you are r not.

If you are self-emplpyued forthe second job, then you need to ensure that you are providing the person / company that you are carrying out work for with invices for the hours you work, and that these match the income you declare.

Roughly what do you earn all together? You don't pay any tax on the difirst £11,000 you earn. If youearn more than that in your first job, then they will pay tax via PAYE on the proportion of your total income from Job #1 which is above £11,000 a year, and you will have to work out, and pay tax on, everything you earn in job #2 at 20%. So for evey £10 you earn, you need to be putting £2 into a savings account to pay your tax with when it comes due.

If your first job pays less than £11K per year then you won't be paying any tax on that income, and you would need to work out £11,000 minus actual income from job #1 which would tell you how much you can earn through job #2 before you become liable for tax, and then start putting away £2 in every £10 forthe amounts over that. (If you total income will be more than £43K then you need to know about higher rate tax as well, but may at that point find it is worth paying an accountant to help out!)


You will also need to check whether you need to pay NI contributions - https://www.gov.uk/self-employed-national-insurance-rates

Guest101

Pomegranates wrote: »

It is a p/a job. My boss said she's never had contracts with her employees so yes I suppose it's self employed which I've never been before.

Is it self employed though? I doubt it, so it's likely she's breaking the law.