Earning One Off Payments

AliFlump | 10:18 Sun 17th Oct 2010 | Business & Finance

8 Answers

Hi, if i were to do some work on the side of my current job (which they are aware of) and earn a one off payment of say £6k, what would i have to do in terms of tax etc?

Thanks

Lloyds and HBOS

all aboard the A train

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Richard1966

If you are working as an employee of a company they will deduct tax and NI at the appropriate rate (usually full for a second job). If however your self employed you should register with HMRC. Its all on their website

ummmm

Phone your local tax office. They will tell you what to do.

Buenchico

You've already had your full tax allowance, so that means that you'll pay tax on every penny of your additional earnings. (Assuming that your total earnings don't take you into a higher tax bracket, that will be at 20%. So that's £1200 out of your £6K gone already).

Annoyingly, if you've got two jobs you have to pay two lots of National Insurance as well. However as your second job would (presumably) be as a self-employed worker you'd only have to pay at the lower rate of £2.40 per week plus 8% of your profits above £5715.

http://www.hmrc.gov.u...ntro/selfemployed.htm

Chris