Salary Sacrifice and Second income

newbride24

Hi I wonder if anyone can help.
I am currently full time employed earning just slightly under £50k per year.
I have recently (May this year) started a side business on etsy selling personalised gifts. I anticipate i'll be making around £5-7k a year profit on this, leading to possibly more. This will take me over the 50k threshold.
I believe I don't need to file a tax return or complete any documentation for this until October 25? Is this correct??
Secondly, I have been offered an opportunity at my full time job to lease an electric vehicle on a salary sacrifice scheme.I believe that this will mean that any profit on my 2nd income (over 50k) will only be taxed at a rate of 20% if I buy into this?
Please can someone let me know if this is correct?

Dazed_and_C0nfused

newbride24 said:

Hi I wonder if anyone can help.
I am currently full time employed earning just slightly under £50k per year.
I have recently (May this year) started a side business on etsy selling personalised gifts. I anticipate i'll be making around £5-7k a year profit on this, leading to possibly more. This will take me over the 50k threshold.
I believe I don't need to file a tax return or complete any documentation for this until October 25? Is this correct??
Secondly, I have been offered an opportunity at my full time job to lease an electric vehicle on a salary sacrifice scheme.I believe that this will mean that any profit on my 2nd income (over 50k) will only be taxed at a rate of 20% if I buy into this?
Please can someone let me know if this is correct?

If your business started in the current tax year then you have until October 2025 to register as self employed and you would normally have to file your first tax return by 31 January 2026.

But once you exceed £1,000 in turnover there is nothing to gain by leaving registering to the last minute.

Your Self Assessment calculation will take into account all your taxable income so if you have less employment income because of salary sacrifice then you will have more basic rate band available for your self employment profits.

So only paying 20% is quite possible.   Plus any National Insurance and/or Student Loan payments due.

Don't forget that if you have a company car then that will generate a new source of taxable income (company car benefit) which is part of your total taxable income.