Tax: Standard Employment + Freelance?

Skyhigh

I've read a fair bit on this forum about similar issues but I'm still not too clear on it all!

First off, I'm employed full time.
In my 'spare' time I want to do additional work (not related to my 'work' work).

It will be down to me to sort out the tax issues, as I'll be paid directly.

I'm not sure how much extra income the work could bring in, but I'd estimate about £4k a year.
Its not a fixed income at all, it depends on whether I have the time and can get the work.

So I'll have to fill in a SA return form (probably online) and declare my additional earnings.
I'm not doing it as a business or company, only as an individual - mostly its for friends and people I know (but I still have to charge them! ).


On to the questions:
Can I just declare this as additional income?
- Or do I have to be classed as self-employed?

Will it affect my tax banding?
- For example, moving from 522L to BR?

If it does affect my tax banding, will the new code filter through to next year?



Any help appreciated!


:!:

Skyhigh

^^ Edited as above.

CLAPTON

For these earning you will be classed as self employed.

You must inform the HMRC within three month of starting.

Your regular job and its tax coding won't be affected.

What level of tax you pay on your SE earning depends upon whether they take your total earnings into the higher rate band (currently 39,825 if your tax code is 522L). If you're not then you will pay 22% tax and will be liable for NI if you earn more than £100 per week.