Do too many employers destroy my tax payments?

OhtobeMortgageFree

I'm a stay at home Mum of one. (Originally a teacher until the start of this year.)
To keep myself busy and help overpay the mortgage I've taken on a number of part time jobs around the time that I am solely responsible for my son.
My main job is working nights in a supermarket at the weekends. I also mark coursework for an exam board, - this isn't year round but has two main seasons across the year. I've just taken on a paper round and I also do some freelance web design for a couple of smaller companies. (Cash in hand so far.)

My questions are, am I penalising myself tax wise by having a large number of jobs? And at what point do I need to declare the cash in hand payments if I am also earning through three different employers?

vegasvisitor

There is a recent addition of a £1000 tax allowance for self employed work, and if you only bring up to £1000 I believe you don't need to declare that. If you do a tax return, and only bring in £1000, I believe it will not charge you tax on that. If you bring in £1000 or more though, tax will be calculated on the full amount.

OhtobeMortgageFree

vegasvisitor wrote: »

There is a recent addition of a £1000 tax allowance for self employed work, and if you only bring up to £1000 I believe you don't need to declare that. If you do a tax return, and only bring in £1000, I believe it will not charge you tax on that. If you bring in £1000 or more though, tax will be calculated on the full amount.

Ah OK, so it might be worth stopping freelance earnings just under the £1000 mark and potentially looking for more paid employment within another company to top up my earnings further?

chrisbur

OhtobeMortgageFree wrote: »

Ah OK, so it might be worth stopping freelance earnings just under the £1000 mark and potentially looking for more paid employment within another company to top up my earnings further?

I would have a look at ....
https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income

"If your annual gross trading or property income, from one or more trades or businesses is more than £1,000 you can use the tax-free allowances, instead of deducting any expenses or other allowances."

As I understand it over the £1000 threshold you can choose to either have the £1000 tax free and pay tax on the rest or to of-set business expenses and pay tax on your profits.

There are also circumstances described here where it may be in your interest to register for self-assessment even when self employed earnings are under the £1000 threshold.

Regarding your original question your tax liability is decided on your total taxable income; number of jobs has no affect. It may however be to your advantage to get your tax allowance divided between employers to minimise paying some tax during the year which you later get refunded. Always better to get money in your pocket earlier rather than later.

Kayalana99

OhtobeMortgageFree wrote: »

Ah OK, so it might be worth stopping freelance earnings just under the £1000 mark and potentially looking for more paid employment within another company to top up my earnings further?

One positive is you do not pay NI on both jobs.

So you actually get paid more for working 2 x 20 hour jobs then 1 x 40 hour job.

As above, it might make it easier to avoid earning over £1,000 so you don't have to register as Self employed - but essentially you are still taxed the same by being self employed or employed ...just more paperwork with SE, but not much more.

[Deleted User]

Do you have a husband? If so apply for the marriage tax allowance so he can save some tax too.

You wouldn't pay tax until you earnt around £11k anyway whether employed or self employed.

Just keep a record of how much you earn, if you need to be self employed it is so easy to register online and then fill in your tax return when they send it once a year - You may also get a bill for NIC's but if you earn less than a certain amount you can apply for an exemption.