tax/employment Q.
Discussion
I am currently self employed working in field marketing... no, not standing in the high street with a clipboard, its merchandising, auditing and mystery-shopping.
I have been doing that since september, but I have just applied for a part time job working for a prison. Obviously, that is going to be PAYE, while my current job I have to submit my tax returns or whatever come April.
How will it work out doing two jobs (if I even get it) where one is PAYE and the other is self-declared?
I have been doing that since september, but I have just applied for a part time job working for a prison. Obviously, that is going to be PAYE, while my current job I have to submit my tax returns or whatever come April.
How will it work out doing two jobs (if I even get it) where one is PAYE and the other is self-declared?
No big deal.
You will receive a Self Assessment tax return for 2005/06 shortly after 5 April 2006. On this tax return, you will need to enter details of ALL your income for the tax year ended 5 April 2006. This includes both your incomes from employment AND self employment. You must also remember to include other income - such as bank/building society/deposit account interest (including your share of such income from joint accounts), dividend income, rental income etc etc etc on the return. You can also make claims for tax relief on the return if appropriate.
Your income from Self Employment goes on the Self Employment Supplementary Pages.
Your income from Employment will go on the Employment Supplementary Pages.
If your employer (The Prison Service or Group 4 or whoever) handles the PAYE details correctly, by 5 April 2006 you should have already paid the correct amount of PAYE tax on your employment income and will not need to make any further tax payments in respect of this.
Obviously, your Self Employed income will not have been taxed yet. The process of calculating the tax and Class 4 National Insurance arising on your Self Employed income takes place when you are actually completing your Self Assessment return. If you submit the return before 30 September 2006, the Inland Revenue will calculate the Self Assessment tax liability for you. If you submit the return AFTER 30 September 2006 YOU must calculate the tax and NI due.
The 2005/06 tax return MUST be submitted by 31 January 2007. If you submit it AFTER that date you will receive a fixed fine of £100.00.
>> Edited by Eric Mc on Wednesday 14th December 13:17
>> Edited by Eric Mc on Wednesday 14th December 22:23
You will receive a Self Assessment tax return for 2005/06 shortly after 5 April 2006. On this tax return, you will need to enter details of ALL your income for the tax year ended 5 April 2006. This includes both your incomes from employment AND self employment. You must also remember to include other income - such as bank/building society/deposit account interest (including your share of such income from joint accounts), dividend income, rental income etc etc etc on the return. You can also make claims for tax relief on the return if appropriate.
Your income from Self Employment goes on the Self Employment Supplementary Pages.
Your income from Employment will go on the Employment Supplementary Pages.
If your employer (The Prison Service or Group 4 or whoever) handles the PAYE details correctly, by 5 April 2006 you should have already paid the correct amount of PAYE tax on your employment income and will not need to make any further tax payments in respect of this.
Obviously, your Self Employed income will not have been taxed yet. The process of calculating the tax and Class 4 National Insurance arising on your Self Employed income takes place when you are actually completing your Self Assessment return. If you submit the return before 30 September 2006, the Inland Revenue will calculate the Self Assessment tax liability for you. If you submit the return AFTER 30 September 2006 YOU must calculate the tax and NI due.
The 2005/06 tax return MUST be submitted by 31 January 2007. If you submit it AFTER that date you will receive a fixed fine of £100.00.
>> Edited by Eric Mc on Wednesday 14th December 13:17
>> Edited by Eric Mc on Wednesday 14th December 22:23
Eric Mc said:
No big deal.
You will receive a Self Assessment tax return for 2005/06 shortly after 5 April 2006. On this tax return, you will need to enter details of ALL your income for the tax year ended 5 April 2006. This includes both your incomes from employment AND self employment. You must also remember to include other income - such as bank/building society/deposit account interest (including your share of such income from joint accounts), dividend income, rental income etc etc etc on the return. You can also make claims for tax relief on the return if appropriate.
Your income from Self Employment goes on the Self Employment Supplementary Pages.
Your income from Employment will go on the Employment Supplementary Pages.
If your employer (The Prison Service or Group 4 or whoever) handles the PAYE details correctly, by 5 April 2006 you should have already paid the correct amount of PAYE tax on your employment income and will not need to make any further tax payments in respect of this.
Obviously, your Self Employed income will not have been taxed yet. The process of calculating the tax and Class 4 National Insurance arising on your Self Employed income takes place when you are actually completing your Self Assessment return. If you submit the return before 30 September 2006, the Inland Revenue will calculate the Self Assessment tax liability for you. If you submit the return AFTER 30 September 2006 YOU must calculate the tax and NI due.
The 2005/06 tax return MUST be submitted by 31 January 2006. If you submit it AFTER that date you will receive a fixed fine of £100.00.
>> Edited by Eric Mc on Wednesday 14th December 13:17
He actually means 31st January 2007 as the deadline for submission of the 2005/06 tax return, the first one that declares your self employed income, so don't panic (yet!). However there is one other deadline looming. You must inform the IR of your commencement to trade as self employed within 3 months of starting, or collect a £100 penalty. Quickest way to do this is to download and complete form CWF1 from the HMRC website, this will also register you for class 2 NI which you will need to pay monthly.
octanebooster said:
However there is one other deadline looming. You must inform the IR of your commencement to trade as self employed within 3 months of starting, or collect a £100 penalty. Quickest way to do this is to download and complete form CWF1 from the HMRC website, this will also register you for class 2 NI which you will need to pay monthly.
I've registered self-employed, what I do need to do is sent back the form for the NI low-earnings exemption... the most I have made since I started is about £160 in a month, but to be fair, I only do about 10 hours a month
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