ChatterBank1 min ago
How do I declare my tax
7 Answers
I have two part time jobs - the first I pay tax at source the second I bill direct for the hours I work. The latter job earns me about £3,000 per annum, the former earns me £4,800 gross per annum. How do I go about declaring tax on my second job or am I not earning enough to worry about it. I am married and my husband is also working part time. Any advice would be gratefully received.
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Agree with both answers - your tax office will be able to decide how your tax liability (if any) will be split across the two jobs. You shouldn't pay much, from the information you have given. It'll be the second job where the tax office will have to tell you how much you owe. Get it right now and it shouldn't cause you problems in future - although be aware that this year's tax year ends on 5th April, so they may ask you to pay any tax owing on job 2, either before then, or by spreading it across next year's tax code. It still shouldn't be very much those, you can earn just over £6000 p.a. without being liable for tax at all under normal circumstances.
The post lack on clarity however i will try to answer as best as possible.
Providing that the two amounts given are Gross Pay you only pay Income Tax at a basic rate.This means any amount less than your Basic Personal Allowance which is currently 6475£ is free of tax. For better understanding how Tax works. If you divide your current personal allwance by 12 months pay is 6475/12=539£/month. So if you exceed 539£/month you will likely to suffer a minimum reduction to your wages.
The new legislation will benefit you:
If you carry your other job from 5th april onwards you will not be taxed until the first 7475£ which is the New Uk Legislation. This means 7475/12=622£/month will be free of tax from 5th april onwards. Any amount over will suffer a reduction.
So from 5th april onwards if your are receiving two incomes and if the summation of the two income do not exceed the New Basic Personal Allowance you will not be taxed in both jobs. If you exceed your Personal allowance you will be taxed at a maximum of 10% (minimum band rate) and up to 40% (higher band rate)
So accoding to your post providing the amounts are gross the overal is 7800£ which exceeds your personal allowance by 325£ as a result you will likely to be taxed but you will be taxed on those 325£ because the new legislation says your new allowance is 7475£.
Please be aware that this explanation do not take into account special circumstances and if you had failed to submit your p45 stating your previous job Tax code you will likely to be taxed in both jobs whether if you are over/under your personal allowance.
If you feel you have been taxed wrongly, fill a tax return in the year-end. Amounts due/owed will be return when you submit the tax reurn form in.
Providing that the two amounts given are Gross Pay you only pay Income Tax at a basic rate.This means any amount less than your Basic Personal Allowance which is currently 6475£ is free of tax. For better understanding how Tax works. If you divide your current personal allwance by 12 months pay is 6475/12=539£/month. So if you exceed 539£/month you will likely to suffer a minimum reduction to your wages.
The new legislation will benefit you:
If you carry your other job from 5th april onwards you will not be taxed until the first 7475£ which is the New Uk Legislation. This means 7475/12=622£/month will be free of tax from 5th april onwards. Any amount over will suffer a reduction.
So from 5th april onwards if your are receiving two incomes and if the summation of the two income do not exceed the New Basic Personal Allowance you will not be taxed in both jobs. If you exceed your Personal allowance you will be taxed at a maximum of 10% (minimum band rate) and up to 40% (higher band rate)
So accoding to your post providing the amounts are gross the overal is 7800£ which exceeds your personal allowance by 325£ as a result you will likely to be taxed but you will be taxed on those 325£ because the new legislation says your new allowance is 7475£.
Please be aware that this explanation do not take into account special circumstances and if you had failed to submit your p45 stating your previous job Tax code you will likely to be taxed in both jobs whether if you are over/under your personal allowance.
If you feel you have been taxed wrongly, fill a tax return in the year-end. Amounts due/owed will be return when you submit the tax reurn form in.
For the one where you bill direct, did you ever register as self employed with HMRC?
How long have you been doing that job? If you worked it for any part of a previous tax year (before April 2010) the filing deadline for self assessment is on Monday 31st January. I need to file a self assessment return for the last tax year even though I have been advised that there is nothing payable. I was registered as self employed for that tax year as I was receiving income where tax was not paid at source via PAYE.
You can now only file online and, for that, you need an account set up on HMRC and for them to send you a code to access the site which they do by post and can take up to 10 working days.
HMRC are open Saturday mornings so it is possible to speak to someone today or Monday if this is the case as, if there is anything you should be declaring for the last tax year and you don't file in time there is a fine of £100 and interest accrues on any tax payable. I believe that all tax owed for the previous tax year also needs to be paid by 31st January.
HMRC have a very good site with lots of information and I have found them incredibly helpful on the phone. They have Enquiry Centres (details on the site) you can go into though you may have to make an appointment to see someone, especially at the moment with the filing deadline for self assessment being so close.
I don't want to panic you but, if you do need to file anything to HMRC for the tax year April 2009 - 2010 then you need to speak to them urgently. I'm not that knowledgable on all this so hopefully someone who is will confirm (though best to speak to HMRC rather than waiting for a reply here).
Hope you get it sorted.
How long have you been doing that job? If you worked it for any part of a previous tax year (before April 2010) the filing deadline for self assessment is on Monday 31st January. I need to file a self assessment return for the last tax year even though I have been advised that there is nothing payable. I was registered as self employed for that tax year as I was receiving income where tax was not paid at source via PAYE.
You can now only file online and, for that, you need an account set up on HMRC and for them to send you a code to access the site which they do by post and can take up to 10 working days.
HMRC are open Saturday mornings so it is possible to speak to someone today or Monday if this is the case as, if there is anything you should be declaring for the last tax year and you don't file in time there is a fine of £100 and interest accrues on any tax payable. I believe that all tax owed for the previous tax year also needs to be paid by 31st January.
HMRC have a very good site with lots of information and I have found them incredibly helpful on the phone. They have Enquiry Centres (details on the site) you can go into though you may have to make an appointment to see someone, especially at the moment with the filing deadline for self assessment being so close.
I don't want to panic you but, if you do need to file anything to HMRC for the tax year April 2009 - 2010 then you need to speak to them urgently. I'm not that knowledgable on all this so hopefully someone who is will confirm (though best to speak to HMRC rather than waiting for a reply here).
Hope you get it sorted.
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