Not really cutting tax but paying it for agency work

JoJoBramble102

Hi Moneysavers,

 I work 4 days a week for the NHS as a theatre nurse, I have been offered extra work with an agency on weekends, and I will be paid £381 per session for 7.5 hours of work.

The agency rules are that I will be responsible for my own tax.

I plan on doing these extra sessions very occasionally. Is it easy to do your own tax?

 I don't really want to pay £149 as I've seen advertised if I'm only going to do a few sessions a year. Is the tax to be paid once a year or after every time I get paid? 

Is there an app that would be useful, I had a look and they all seem to be for businesses.

Sorry for all the questions

x

BJV

I have never done my own tax. TBH I would be too frightened to get something wrong. Personally, for the sake of 149, I would pay one of the online accountants to do it. At least that way it is done right and HMRC wont be knocking at your door. 

Self assessment Tax is normally paid every end of Jan and then every end of July. You will have to declare it even if you only plan to do a few days. I am sure that an accountant will be along soon to give proper advice but every time I looked at any HMRC form or website it seems so complicated.

I would also bear in mind that any extra money you are paid my affect your PAYE.

Dazed_and_C0nfused

JoJoBramble102 said:

Hi Moneysavers,

 I work 4 days a week for the NHS as a theatre nurse, I have been offered extra work with an agency on weekends, and I will be paid £381 per session for 7.5 hours of work.

The agency rules are that I will be responsible for my own tax.

I plan on doing these extra sessions very occasionally. Is it easy to do your own tax?

 I don't really want to pay £149 as I've seen advertised if I'm only going to do a few sessions a year. Is the tax to be paid once a year or after every time I get paid? 

Is there an app that would be useful, I had a look and they all seem to be for businesses.

Sorry for all the questions

x

If it's working for an agency why wouldn't you be on PAYE?

DullGreyGuy

JoJoBramble102 said:

Hi Moneysavers,

 I work 4 days a week for the NHS as a theatre nurse, I have been offered extra work with an agency on weekends, and I will be paid £381 per session for 7.5 hours of work.

The agency rules are that I will be responsible for my own tax.

I plan on doing these extra sessions very occasionally. Is it easy to do your own tax?

 I don't really want to pay £149 as I've seen advertised if I'm only going to do a few sessions a year. Is the tax to be paid once a year or after every time I get paid? 

Is there an app that would be useful, I had a look and they all seem to be for businesses.

Sorry for all the questions

If you dont want to do the tax side you can presumably join an umbrella company? Just remember that the £381 then becomes their revenue and what you get paid is less both the employee and employer taxes.

You complete your tax return in January and pay what you are due at the same time. Depending on how much tax you have to pay they may also ask for payment on account so you also pay 50% of the following years estimated tax then and the other 50% in July. Then the next January its just a true up to adjust the payment on account to the actual taxes due and the next payment on account.

For a simple income of a few payments a year for a service and negligible expenses it's very easy to do self assessment. 

NannaH

Would you really be ‘self employed’  under hmrc rules?
Inside or outside IR35?
If you work via an umbrella then be aware that you pay double NI,  your own and Employer’s but it does mean you don’t sort out your own tax return.  
I would have thought the agency would advise you about what you need to do. 

https://www.litrg.org.uk/tax-guides/self-employment/am-i-employed-self-employed-both-or-neither#:~:text=The%20general%20rule%20is%20that,or%20failure%20of%20that%20business.

Flugelhorn

I used to do lots of locums on top of my NHS PAYE - I used to do a self assessment form and then the HMRC would tell me  how much I owed them each year. Bonus was that I had the money for ages before they asked for the tax so it sat in an offset mortgage account - trick is to keep careful records 

JoJoBramble102

The Agency has been set up by a syndicate of anaesthetists to try and get waiting lists down, it is cheaper for the Trust than paying outside agency staff. They have said we are responsible for our own tax affairs so there is no option to do PAYE. They are just starting up at the moment. My basic pay is £42600, I won't be doing so much to take me into the next tax bracket. I intend to save the money to boost my retirement pot. My mortgage is paid off but I'll get interest on it until the HMRC want their bit.