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Paying PAYE but self employed for 2nd job

sparklewoman
by sparklewoman 02 December 2012  |  Comments 3 comments  |  Love Love  0 loves

I am employed full time & on PAYE, earning around 39K. However, am about to take up extra work on a self employed basis - what are the tax implications?

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Comments (3)

  • SoftwareBear
    Love rating 216
    SoftwareBear posted

    You'll need to do a tax return and declare the extra income ... any income you take from the self employed job will need to be added up as your total income and then pay separately the extra tax that wasn't collected through PAYE.

    Posted on 02 December 2012 | Love Love  0 loves Report
  • MikeGG1
    Love rating 879
    MikeGG1 posted

    I agree with SoftwareBear. If you don't already have to complete an annual return, you will need to apply for it. The return can be completed online after the end of the tax year.

    As this will be income on top of your PAYE earnings, please assume higher rate on all of it and put it by until you complete the return. After the first year, they will make allowance for the extra income so that you will have to make a payment on account for the next year of 50% of the additional tax.

    Have you notified your current employer? There could well be a requirement in your contract of employment.

    There are also maximum hours under the Working Time Directive.

    Mike

    Posted on 02 December 2012 | Love Love  1 love Report
  • TJ
    Love rating 0
    TJ posted

    Remember, if you do a Self Assessment tax form and you are self employed you can make all kinds of deductions against your SE income, like, petrol when running your 'business', stationery, stamps, use of a room in your house as an office, percentage of car running costs, work clothes if appropriate, these are just a few. This way you can reduce your extra income and keep under the higher income bracket.

    Posted on 05 December 2012 | Love Love  0 loves Report

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