Tax on side-gig

SteveyJC

Hi All, I'm currently a 40% tax payer, earning around 80k per year PAYE with a company.   I have a separate side-gig where I act as a contractor, earning approx £10-12k per year. I invoice the company I contract for separately, and will declare this money in next year's tax return.  What % of the money I earn from this side-gig should I keep aside for paying tax?    

Many thanks

[Deleted User]

On 12k of profit you will pay tax at 40% rate. 

SteveyJC

Should I add a couple of additional % of NI?

Albermarle

Hopefully you are putting quite a lot into a pension and getting 40% tax relief ?

[Deleted User]

SteveyJC said:

Should I add a couple of additional % of NI?

Class 4 NI only payable when profits exceed 12570. Class 2 NI would then be payable at £3.45 per week in this tax year.

Jeremy535897

[Deleted User] said:

SteveyJC said:

Should I add a couple of additional % of NI?

Class 4 NI only payable when profits exceed 12570. Class 2 NI would be payable at £3.45 per week in this tax year.

Class 2 also only payable when profits exceed £12,570.

[Deleted User]

Jeremy535897 said:

[Deleted User] said:

SteveyJC said:

Should I add a couple of additional % of NI?

Class 4 NI only payable when profits exceed 12570. Class 2 NI would be payable at £3.45 per week in this tax year.

Class 2 also only payable when profits exceed £12,570.

Yes - that’s what I meant - I have added one word!