To resent paying so much tax on side hustle earnings?

Anyone that does loads of overtime presumably needs the money as well?

It probably feels frustrating because you are noticing it more as it's a business being built by you.

But this is no different to you getting a promotion at work. Try to view it in that light. You are being treated the same as any ody else, you're just noticing it.

I'm on £27k and have a side job rathe than a 'hustle' and have to pay tax on this. Not paying tax on £1k for you is a better deal than I get, stop complaining!

Stop when you get to £ 1,000.

Just wait for the 60% marginal tax rate when you go over £100k, that bit really stings…

[NB not actually complaining, aware that’s a lot of money]

I don't resent taxes in main job. I've paid taxes all my life but if it's a side gig or hobby to earn some extra cash then why should that be taxed to the max as well?

This just makes no sense. You can cutesy it up with the term ‘side huddle’ but it’s just another job, why would it not be taxed?

Yanbu, I resent paying tax even on earnings from my 'main job'. Wouldn't mind it if things actually worked in this country but paying money for half the country to be on strike, to phone the doctors and have to appease the gatekeeper receptionist into thinking you're unwell enough to access the health care you pay for every month, blah blah I could go on.

I think we get a rubbish deal personally :) my hope is Labour comes in, makes it all better for public sector workers, and I can go back to feeling grateful to pay tax and have access to great services. Is that wishful thinking 😆

Anyway, rant over. Yanbu. You're hardly raking it in in this cost of living crisis and you've paid tax all your life it seems. However it is the law and unfortunately you have to pay it.

My mate works for the civil service and they got a one off £1500 cost of living payment recently. He was furious because nearly half of it was taxed and he received about £800 into his bank. I do think it calls into question the motivation for giving civil servants that payment considering so much was taxed.

There’s also a school of thought that too much income is taxed in the UK and the wealthiest are not necessarily receiving most of their wealth from income so they evade it. I don’t know much about this but I’ll be reading up on it.

Lizz Truss, is that you? (waves)

AIBU for wanting to know what the side hustle is and why it would be 'outing' to tell us??

Come on OP - I'm dying to know and then I might be able to give it a go.

Hear hear @ElleDeeCB !

Also, @Powfred your posts made me stop and think. Initially on this thread I was with the others of the mind set "call it what you like, it's income and taxed". But I then started wondering. Of course a main problem is the wealthy do have loop holes , so the majority of tax comes from us, and then as @ElleDeeCB so eloquently described, we're given crap service back so the motivation is obliterated. What if there was a system whereby a person paid tax for the first lot of full time hours, hiwever many jobs it took to get up to full time, whatever the job, whatever the pay, whatever the tax bracket. But then income earned beyond the initial full time taxed pay was yours. That would be a massive incentive. Op, become an mp and lobby.

I need the money. I don't have the skills or resources to start a "side hustle" so I got a second job in a pub working evenings alongside my full time day job. Should I not get taxed as much on my pub job because I need the money? Or should I be paying tax because I have failed to acquire the clever skills to run my own side business? Is it only clever creative "I run my own business" people that should be exempt from tax on a second job?

If you're that close to the higher tax threshold, just keep increasing your workplace pension contributions in line with your current or expected side hustle profit. Badda bing, it's effectively the same as your side hustle money is going into your pension fund with 40% tax relief.

I took on a second job to my full time one to save up for a car: three nights working in a pub. I declared the second job and was taxed on both incomes. I didn’t expect not to be.
Income is income. You pay tax on it.

Politicians would love you.
Their side hustles are usually lucrative positions on a board or writing articles for newspapers.
You’re working a second job, you pay tax appropriately.
Be pleased you don’t live in France where turnover is taxed too.

That's not right- ive just looked at the stats which vary immensely
"The share of income tax paid by the top 1% of taxpayers – a smaller slice of the population because so many people pay no income tax – has risen from 24% of the total in 2007-08 on the eve of the financial crisis to 30% currently"Th guardian quoting Institute of fiscal studies"

And thats just looking at Income tax- they pay even lower a portion of National insurance as that doesn't go up with income
.

You are not wrong OP. Most people on here are economically illiterate and will give you a hard time without understanding that higher taxes actually prevent people for working or creating more. As you have already stated.

I have a similar income and side hustle to the OP and haven't been charged anything like 40%. In fact, last year I actually got a 2k rebate when I submitted my return as I'd been out of work earlier in the year and overpaid PAYE.

Just hoping HMRC haven't made a mistake now...

I don't really follow your logic, OP. You don't seem to be the type of person who resents paying tax full stop - you show an acceptance of the need to contribute to public services. But you seem to be most annoyed about having to pay tax on income generated by something that you enjoy doing.

Surely, if anything, it's easier to work at something you enjoy, so that is all the more reason why it is fair to pay tax on any profits that it generates. If someone works hard cleaning toilets, is it more fair for them to pay tax than someone who makes money from a hobby? Surely, if anything, they need more of an incentive to work than the person doing something they love?

Also, I'm not sure why a second job/side hustle should attract less tax than someone working hard to earn a higher salary in a single job/business. Income is Income, regardless of where it comes from. You say that there is no incentive to take the initiative to increase your income if you have to pay tax on it, but I don't understand this as you still get the 60% of income that isn't taxed... isn't that your incentive because you're still better off than you would have been? I just can't follow your argument.

I’ve heard this phrase a lot on here recently, how do you people know if they’re a “net contributor” or not? I assume I am as I earn over 40K, don’t receive housing benefit or UC, don’t have any dependents or use hospitals/doctors bar the occasional GP visit, but can’t be too sure. Not the point of the thread and it won’t make a huge difference to my life but just curious! 😆

I won’t disclose what I do as it’s outing but in addition to my full time job where I earn around 40K I do a creative career where for the last few years I’ve earned 6-12k per year. Last tax year I earned about 9K and was only taxed around £350. My accountants actually estimated I pay about £500 which I did, but HMRC refunded me a few weeks later for overpayment.

What I did resent was the massive accountants bill of £950 for not much work (I just had a few invoices to pass onto them so they weren’t drowning in my paperwork or anything ) .

I’ll be changing accountants for the next tax year as I know I can get that service done for a couple of hundred quid. It would be different if I was fully self employed but as I only need them for a job that isn’t my main income I don’t feel I can justify the 1K accountants bill any longer.

That said, a good accountant is necessary and important to (hopefully) make sure you don’t pay more or less than what you’re meant to.

The system wants your money through tax to pay for all the public services which are now more expensive due to the col!

OP my cleaner's husband earns £26k a year and they have three kids one with special needs and they live in a 2 bedroom flat in the south east. She earns £5k from cleaning - you really aren't as poorly off as you think you are.
There are lots of people trying to make extra money at the moment.

I have a side hustle of 7 rental properties on top of my “actual” job which I resent paying tax on. It’s not fair, property is a hobby for me and I was just being entrepreneurial when I went into it to make a few pennies for the family.

So I completely agree with you OP, no tax on anything except main job!

(obvs this is not true but it makes the point, income is income, not everyone makes their income from one job).

Ah that famous entrepreneurial spirit of throwing in the towl and shouting "it's not fair" at the first roadblock