Second job as self employed

MrsYox

Hi, 
Not sure if posting in correct place - please do move if better suited elsewhere! 

For my main job I am employed and in 41% tax bracket (Scotland).
This year I registered as self employed and have been doing some additional work elsewhere on that basis.
I am trying to work out how much I need to save as a buffer for paying tax on self employed earnings, everything I’ve read suggests 30% but as I am already paying a higher rate of tax, would the self employed income mirror that? 

Wanting to work out how much I can take as drawings, just now I’m leaving the self employed income alone as worried about not having enough to pay the tax! 

Any advice gratefully received :-) 

Sandtree

There is no additional tax free allowance etc for being self employed and an employee so if the later already puts you into the higher rate tax payer then the SE profits will be at higher rate too from the ground up.

Comms69

Sandtree said:

There is no additional tax free allowance etc for being self employed and an employee so if the later already puts you into the higher rate tax payer then the SE profits will be at higher rate too from the ground up.

There's a £1k 'allowance' in England - not sure if that applies to scotland.

Dazed_and_C0nfused

Comms69 said:

Sandtree said:

There is no additional tax free allowance etc for being self employed and an employee so if the later already puts you into the higher rate tax payer then the SE profits will be at higher rate too from the ground up.

There's a £1k 'allowance' in England - not sure if that applies to scotland.

I think that's maybe a confusing way of putting it.

There is a trading allowance of £1,000 which you can use instead of claiming actual expenses if it is a better option i.e. expenses are only say £600.

It isn't an allowance which will feature in your Self Assessment calculation.

Being Scottish resident for tax purposes is irrelevant as far as the trading allowance is concerned.  The Scottish government only have power to set the tax rates and rate bands.

Comms69

Dazed_and_C0nfused said:

Comms69 said:

Sandtree said:

There is no additional tax free allowance etc for being self employed and an employee so if the later already puts you into the higher rate tax payer then the SE profits will be at higher rate too from the ground up.

There's a £1k 'allowance' in England - not sure if that applies to scotland.

I think that's maybe a confusing way of putting it.

There is a trading allowance of £1,000 which you can use instead of claiming actual expenses if it is a better option i.e. expenses are only say £600.

It isn't an allowance which will feature in your Self Assessment calculation.

Being Scottish resident for tax purposes is irrelevant as far as the trading allowance is concerned.  The Scottish government only have power to set the tax rates and rate bands.

Thanks for clarifying the scottish position. Yes it's not an 'allowance' in the traditional sense, but it broadly does the same thing

MrsYox

So basically it’s 41% of my self employed earnings that will also go as tax? 

Comms69

MrsYox said:

So basically it’s 41% of my self employed earnings that will also go as tax? 

Yes - of course

Dazed_and_C0nfused

And don't forget potential additional liabilities from Class 2 and Class 4 National Insurance, extra Student Loan payments and the High Income Child Benefit Charge.