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PAYE Employment + Contracting

Hello,

I've recently started doing contracting alongside my PAYE full-time employment. Obviously my tax is deducted automatically on PAYE at the 20% rate. However, the Contracting work has actually taken me up into either the 40% or maybe 50% bracket. I would need to check this to be sure though, it's one or the other.

How do I adjust it so my PAYE is automatically deducting the correct amount from my pay? Do I need to speak to the finance team at work?

Comments

  • nicechap
    nicechap Posts: 2,852 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    If you think you are in 50% bracket, I!!!8217;d speak to an accountant.
    Originally Posted by shortcrust
    "Contact the Ministry of Fairness....If sufficient evidence of unfairness is discovered you’ll get an apology, a permanent contract with backdated benefits, a ‘Let’s Make it Fair!’ tshirt and mug, and those guilty of unfairness will be sent on a Fairness Awareness course."
  • LilElvis
    LilElvis Posts: 5,835 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    You're going to need to complete a tax return annually where you will consolidate all your earnings. There is no mechanism whereby your self employment tax is collected through your paye earnings. There is no 50% tax rate - the highest rate is 45% for earnings over £150,000.
  • Stoke
    Stoke Posts: 3,182 Forumite
    nicechap wrote: »
    If you think you are in 50% bracket, I!!!8217;d speak to an accountant.

    Already on it. Phoning them today.
    LilElvis wrote: »
    You're going to need to complete a tax return annually where you will consolidate all your earnings. There is no mechanism whereby your self employment tax is collected through your paye earnings. There is no 50% tax rate - the highest rate is 45% for earnings over £150,000.
    So, I will need to basically put aside a bit more than half so I can accommodate my PAYE Job as well.
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