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How much tax?

(14 Posts)
MrsLouisTomlinson Fri 22-Jul-16 09:32:50

I've recently got a second income (not PAYE) and I have no idea how much of it I should be putting away for the tax bill when it comes around. For my main job I earn approx £30k per year and so far this tax year I've earns around 2.5k from my second income. I'd like a rough idea if anyone can help at all as to how much I should be setting aside as I'm terrified of getting stung for money I don't have so at the minute I'm setting aside almost 50% which I'm hoping is far too much. I know no k w can give me exact figures but if anyone can explain a ballpark percentage is be eternally grateful.

MrsLouisTomlinson Fri 22-Jul-16 11:20:57

No ideas anyone?

DoubleCarrick Fri 22-Jul-16 11:22:12

I'm pretty sure it's 20%. 50% will be good though as you'll have left overs

GreenSand Fri 22-Jul-16 11:26:03

Will you need to pay NI on the second income too?
If your total taxable income stays under 45k, the tax element will be 20%. I don't know if you need to pay NI, but that is upto 12%

MrsLouisTomlinson Fri 22-Jul-16 11:41:41

How do I know if I will have to pay NI? I assumed I would. So with tax and NI it will be over 30%?

PoisonWitch Fri 22-Jul-16 11:46:55

Do you have a student loan? You'll need to put aside for that and likely class 4 national insurance which is a percentage of your earnings if you earn over eight grand or so self-employed. Obviously income tax at 20% unless you top over into higher rate but you'll only have to pay 40% on what you earn over the threshold.

I'd put away about 40% overall to be safe. If you keep saving at your current rate you'll have a nice amount left over at the end of the year which will be nice grin

You will have to notify for self assessment by October or you could get a penalty. Put in return and pay by 31 January. You can pay on account as well the next tax year which means you stagger your bill and makes it a bit easier.

Call HMRC if you want more advice. They are very happy to help.

MrsLouisTomlinson Fri 22-Jul-16 14:53:49

Thank you poison. So 40% to be safe and that will potentially leave a bit at the end. That's great, thank you. I think I'll give them a call and see what they say. I haven't registered yet so need to do that anyway. Am I right in thinking the money I earn this tax year doesn't have to have tax paid until Jan 2018? Or is that not right? I have a student loan. I didn't even think about that!

Badbadbunny Fri 22-Jul-16 19:22:15

On just £2.5k, you'll have neither class 2 nor class 4 NIC because you're below the threshold. Just tax at 20% and student loan if you're liable for repayments.

MrsLouisTomlinson Fri 22-Jul-16 23:29:23

Thanks bad bad but I know I will exceed 10k from the job just due to work I already have booked in between now and November and then of course therest of the financial yer after that.

rainbowunicorn Sat 23-Jul-16 15:42:28

My husband has a second income and is self employed. I have been self employed for many years until recently. We have always put away 30% of our income for tax and national insurance.

cozietoesie Sat 23-Jul-16 17:37:55

I'm with a PP. 50% is probably too much but it gives you a nice bit of (enforced) saving. smile

Cindy34 Sat 23-Jul-16 18:28:04

I put aside 30% and so far it has been fine... I have business profits of under £4k in a typical year. Nice to have a lower tax bill than the amount in my savings account.

PoisonWitch Sun 24-Jul-16 00:36:32

For money you earned up until April 6th you will have to pay the tax Jan 2017. What you earned since April 6th will be due Jan 2018 but if you had earnings from before April this year you may be required to make payments on account for this financial year's earnings in July 2017 and Jan 2018. Call hmrc to double check smile

Gfplux Tue 26-Jul-16 08:51:18

Call HMRC and ask them.
I would agree 40% should be put aside.

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