Extra tax to be paid

sultan123

Please can someone help me with this calculation. If I am earning 81k as salary from regular employer and then earning self employed income of 10k a year how much tax do I pay on the extra 10k? Would it be 40% of that 10k?

Grumpy_chap

Yes, assuming that the £10k is the Self-employed sole-trader profits after deduction of allowable expenses.

Probably worth engaging the services of an Accountant.

sultan123

Grumpy_chap said:

Yes, assuming that the £10k is the Self-employed sole-trader profits after deduction of allowable expenses.

Probably worth engaging the services of an Accountant.

Thanks, I am looking at accountants and hope to have 1 soon.

I also pay NI on the extra 10k?

sultan123

Please help with NI calculation on 10k

Cross_Man

You need an Accountant as the calculation for NI will depend on exactly how the self-employment is set up, especially in parallel to PAYE employment.

sultan123

Cross_Man said:

You need an Accountant as the calculation for NI will depend on exactly how the self-employment is set up, especially in parallel to PAYE employment.

Sole trader set up

Scorpio33

You would pay self-employed NI on your self-employed profits.

see https://www.gov.uk/self-employed-national-insurance-rates