New Job and doing my own Taxes

MattKemp

Hi, I've recently gotten a new job that is Seasonal (June-January) and I get paid through PAYE. I am also looking at taking up a job with someone who is not on PAYE to help them out and also to make up for months where I have no work. I'm assuming I would need to pay my own taxes from this second job as it would be cash in hand so to speak. I've never done this and wouldn't know where to start, how does my other job impact this? What do I need to keep track of? etc. Sorry if this isn't the right forum for this, I'm just looking for input, the bank gave me the number of their Business Team when I went in to chat to them about it. Thanks.

Dazed_and_C0nfused

MattKemp said:

Hi, I've recently gotten a new job that is Seasonal (June-January) and I get paid through PAYE. I am also looking at taking up a job with someone who is not on PAYE to help them out and also to make up for months where I have no work. I'm assuming I would need to pay my own taxes from this second job as it would be cash in hand so to speak. I've never done this and wouldn't know where to start, how does my other job impact this? What do I need to keep track of? etc. Sorry if this isn't the right forum for this, I'm just looking for input, the bank gave me the number of their Business Team when I went in to chat to them about it. Thanks.

The new employer will need to operate PAYE.

You having an existing job makes that compulsory.

Savvy_Sue

Dazed_and_C0nfused said:

MattKemp said:

Hi, I've recently gotten a new job that is Seasonal (June-January) and I get paid through PAYE. I am also looking at taking up a job with someone who is not on PAYE to help them out and also to make up for months where I have no work. I'm assuming I would need to pay my own taxes from this second job as it would be cash in hand so to speak. I've never done this and wouldn't know where to start, how does my other job impact this? What do I need to keep track of? etc. Sorry if this isn't the right forum for this, I'm just looking for input, the bank gave me the number of their Business Team when I went in to chat to them about it. Thanks.

The new employer will need to operate PAYE.

You having an existing job makes that compulsory.

I'm not sure I understand that bit I've bolded: it's perfectly possible for someone to be both employed and self-employed. 

The question would be whether the second job is true employment, or can safely be classed as self-employment. If the second job wants you and you alone there, dictates when, where and how you work, then - even if it is 'as and when' hours - I agree with DandC that the new employer needs to investigate PAYE. 

https://www.gov.uk/guidance/check-employment-status-for-tax

But if it is a case of "I've got 500 leaflets I need pushed through letterboxes in the next week, can you do it for me?" then I'd say the OP can do this as self-employment and sort his own taxes out. 

kimwp

If it does class as self employment, then check out the litrg website advice on self employment - it's designed to help individuals with this kind of thing. 

You'll need to keep track of how much you earn from the self employment and any business expenses. Then you need to consider things like -is it under £1000 that you got paid - if so, it could be tax free under the trading allowance. If not, then you'll probably need to do a tax return and your PAYE and self employment income will be combined to work out your tax liability. In this case, you'll need your P60 from your PAYE employer (you'll be sent this at the end of the tax year and then I think you have some time (maybe til the January after?) to complete the tax return)

Not sure how national insurance contributions work with self employment.

Sorry for the vagueness, this is what I've picked up from friends and family who are self employed, but hopefully it gives you some things to research.

Dazed_and_C0nfused

Savvy_Sue said:

Dazed_and_C0nfused said:

MattKemp said:

Hi, I've recently gotten a new job that is Seasonal (June-January) and I get paid through PAYE. I am also looking at taking up a job with someone who is not on PAYE to help them out and also to make up for months where I have no work. I'm assuming I would need to pay my own taxes from this second job as it would be cash in hand so to speak. I've never done this and wouldn't know where to start, how does my other job impact this? What do I need to keep track of? etc. Sorry if this isn't the right forum for this, I'm just looking for input, the bank gave me the number of their Business Team when I went in to chat to them about it. Thanks.

The new employer will need to operate PAYE.

You having an existing job makes that compulsory.

I'm not sure I understand that bit I've bolded: it's perfectly possible for someone to be both employed and self-employed. 

The question would be whether the second job is true employment, or can safely be classed as self-employment. If the second job wants you and you alone there, dictates when, where and how you work, then - even if it is 'as and when' hours - I agree with DandC that the new employer needs to investigate PAYE. 

https://www.gov.uk/guidance/check-employment-status-for-tax

But if it is a case of "I've got 500 leaflets I need pushed through letterboxes in the next week, can you do it for me?" then I'd say the OP can do this as self-employment and sort his own taxes out. 

The op never mentioned being self employed.

They said they were getting a second job.  Which if correct would mean a PAYE scheme was needed.

If they really mean they are starting their own business and becoming self employed then that would be different.

Savvy_Sue

Dazed_and_C0nfused said:

Savvy_Sue said:

Dazed_and_C0nfused said:

MattKemp said:

Hi, I've recently gotten a new job that is Seasonal (June-January) and I get paid through PAYE. I am also looking at taking up a job with someone who is not on PAYE to help them out and also to make up for months where I have no work. I'm assuming I would need to pay my own taxes from this second job as it would be cash in hand so to speak. I've never done this and wouldn't know where to start, how does my other job impact this? What do I need to keep track of? etc. Sorry if this isn't the right forum for this, I'm just looking for input, the bank gave me the number of their Business Team when I went in to chat to them about it. Thanks.

The new employer will need to operate PAYE.

You having an existing job makes that compulsory.

I'm not sure I understand that bit I've bolded: it's perfectly possible for someone to be both employed and self-employed. 

The question would be whether the second job is true employment, or can safely be classed as self-employment. If the second job wants you and you alone there, dictates when, where and how you work, then - even if it is 'as and when' hours - I agree with DandC that the new employer needs to investigate PAYE. 

https://www.gov.uk/guidance/check-employment-status-for-tax

But if it is a case of "I've got 500 leaflets I need pushed through letterboxes in the next week, can you do it for me?" then I'd say the OP can do this as self-employment and sort his own taxes out. 

The op never mentioned being self employed.

They said they were getting a second job.  Which if correct would mean a PAYE scheme was needed.

If they really mean they are starting their own business and becoming self employed then that would be different.

Ah yes, that does now make more sense. 

Re-reading the original, 'cash in hand' is mentioned. Nothing wrong with being paid in cash, but red flags and loud alarms start ringing where there is no piece of paper detailing what has been paid, when, and what deductions have been made! 

LITRG

Hi, here is the link to the LITRG info on employment status, signposted above. Hope it helps,: https://www.litrg.org.uk/working/employment-status/employed-self-employed-or-neither