2 jobs and tax

[Mrs Manson]

Hi

I've recently started a full time job after finishing study. The job is on PAYE but I already have a p/t self employed job which i do from home. I have done the self employed job for about 4 weeks.

How do i pay tax and ni on the self employed job.  The earnings aren't that good. Works out about �100 tops a month, if that. 

Do i have to register as self employed and pay the tax man direct.  How would it effect already having a full time job. Would my employer find out. 

Any info would be much appreciated. Many thanks.

[kags]

Yes, you do need to notify the Inland Revenue that you are self-employed. You must pay weekly National Insurance Contributions of �2.10 a week, and the Inland Revenue will send you the necessary forms to pay these contributions when you notify them. If your self-employed earnings are likely to be less than �4345 a year you can apply for exception from paying. You can also ask for payment to be deferred if you are likely to  earn sufficient in your job to pay the maximum at 11% there.

As regards tax, you will normally be allocated your personal allowance in your PAYE job, and there is no reason for your employer to know you are also self-employed simply from your tax code. At the end of the tax year, you will then need to submit a Tax Return showing all your earnings, and compare the tax paid via PAYE with the total tax due on both sources of income. Any tax you owe will be due for payment on 31 January following the end of the tax year. Depending on the amounts involved, you may also have to make a payment on account for the next tax year at the same time, and also on the following 31 July.