Two jobs, one PAYE, one self employed - how to work out NI contributions

Pathfinder000

I don't know if this goes here, but I am trying to work out some stuff before I actually do it.

So i have a primary job, earning around £28k/year. I freelance on weekends as an instructor and can make up to £250 on the weekends (but wouldn't always work every weekend).

So my intention is never to cross out of the 20% tax bracket and will unlikely ever come close to it (and if I did, I would stop working and go on holiday until the next tax year).

So to work out tax on earnings per month is easy. But how do you work out NI contributions and student loan repayments? Is there an equation or website where I can get those figures or the information needed on how to calculate them?

Thanks.

p00hsticks

NI doesn;t work like income tax - it's calculated for each individual source of income for each individual payment period and you don't get refunds.

So your NI contributions will remain as they are from your (presumably PAYE ? ) primary job.

Any NI payment due from your self-employment will depend on your income over the year - I believe that usually you'd pay any due as a lump sum at the end of the year, but I'm not an expert….

Pathfinder000

Ahh ok, that would be much easier to deal with since the work I would do as a self employed contractor is likely to be variable throughout the year. Working it out from a lump sum at the end of they year would be massively easier than doing it all on a month to month basis and would also benefit from me knowing exactly how much I made from my primary job.

molerat

No NI will be payable on SE profits below £12570 for the year, class 4 payable at 6% for amounts above that.

Savvy_Sue

Student loan is also assessed when you do your tax return at the end of the year. Bear in mind that it's a flat % taken off if you're 'over the limit', which you will be just from your employment, so expect to lose a chunk to SL.

LITRG

Hi Pathfinder00

We have guidance explaining how student loan repayments are calculated and paid under self assessment on our website: https://www.litrg.org.uk/tax-nic/student-finance-and-tax-system/student-loan-repayments/self-assessment-student-loan-repayments , hope this helps you.

Pathfinder000

https://forums.moneysavingexpert.com/discussion/comment/81982514#Comment_81982514

Thanks for that, it included a lot of useful information, especially regarding the limit before payments are taken. Since I am not quite there yet to enable the extra work and the fact I also generally don't work for the full 12 months it's possible for now I won't hit the repayment limit. But definitely once I add in extra wage it will kick in.

So if you have two jobs and earn say 15k from each job, working for two completely different companies, being paid through PAYE. How does it work? So say i reduced my primary job hours and worked (on the books) part time for a different company instead of being a contractor. Would I still have to file a self assessment or would it be dealt with automatically through PAYE?

molerat

If you are an employee it will all be dealt with through PAYE. NI though is different to tax in that you get the allowance with each job. Have one job earning £2096 in a month you will pay £83 NI. Have 2 jobs earning £1048 in each you will pay no NI but will get NI credits as you are earning over the £559 monthly LEL in a single employment. Having to file SA though is essentially at the whim of HMRC if you have been previously filing - you would have to ask them to remove it.