To ask for your Tax / NI advice

[TaxHelpPlease]

Sorry, I tried to post this in work but for some reason that wouldn't work.

I'm starting a second job soon and it's self employed.
How do I go about sorting my Tax & NI (and anything else I should be paying)
What forms do I need and what rate is second job tax / NI paid at?

(I'm carrying on my first job but the employer sorts the tax & NI for that and that one already exceeds my personal allowance.)

Thanks for any advice you can offer!

Read this as a start:
www.gov.uk/working-for-yourself

You don't get a new tax allowance for your self employment if that's why you're asking about rates. Your total tax bill will depend on your total income. Be aware of what you can claim, keep records, and make use of the advice from hmrc. They have an extensive online support service for the self employed.

You will need to fill in an on line self assessment form each year. One part will be the information from your P60, supplied by your employer. There is another section where you can fill in your earnings, expenses related to you self employment.
Once submitted the system will inform you how much you owe HMRC, and give you options of how to pay it.

You pay someone like my DP £200-500 pa to sort it for you!

It may be worth checking whether you are genuinely self-employed as well before you start, as you refer to starting a new job. Some unscrupulous employers are pushing their staff to register as self employed so that they can avoid their responsibilities for holiday pay, sick pay and pensions. www.gov.uk/working-for-yourself.

Sorry nap I thought you had posted a link to how to register!

Register with HMRC as self employed.

Keep all records from your first job as well as your self employed job. The tax rate is the same but NI is lower for self employed. (although think this may have changed in the latest Budget???)

Register self employed with HMRC. They send you log in details. You fill in a form online once a year. The tax year ends 5th April and you have until the end of Jan the following year to fill in the form. The form will ask you about all of your earnings so use P60 to fill in about your employed job and your own records for the self employed work. They then calculate your tax and you pay it. Very simple really as long as you have your records handy. You can also claim for expenses such as travel, meals, professional memberships, clothing etc (details on HMRC page). The form has spaces for all this stuff.

I agree check it's proper self employment - there's a law called IR35 - consider these:

Control: what degree of control does the client have over what, how, when and where the worker completes the work
Substitution: is personal service by the worker required, or can the worker send a substitute in their place?
Mutuality of obligation: mutuality of obligation is a concept where the employer is obliged to offer work, and the worker is obligated to accept it.

Good advice from Stickerrocks! Check your status. Self employment has its benefits and can be a great option but increasingly these days it's being used as a get-out clause by businesses to shaft people out of employee status. Just as Stickerrocks says.

You can find the link about how to register on the page we have both linked to.

You refer to having a second job but then refer to self employment. I would really check the employment status on it as you are considering it to be a job, rather than you running your own small business providing services to clients.

In a second job (employment) you would be on BR tax code and would have Income Tax deducted at 20%. NI would depend on your earnings.

Running your own business you pay income tax and class 2 & class 4 NI based on your business profits.

I would put aside 35% initially and as time goes by you will have a better feel for what your profits are and can calculate the taxes due.

It's a second job with a company and they will pay wages into my account but the interviewer said it's technically self employed so I have to sort my own tax and NI.
It's only a few hours a week so I'm not too worried about holiday / sick pay (I'm not doing this job cos I need the money, it's for the experience and to go on my CV) but I don't want to get the tax wrong and end up with a fine or a huge bill 😬
Thank-you all for your advice, it's been very useful.

Bear in mind if you register for self assessment now you will need to submit a tax return for 16/17 but if you register 6 April 17 you won't need to do one until next year.

How soon will you start earning? Can you hold off a couple of weeks?

Bare* ffs

I'd also want to know what technically self employed means. Look up the definition of self employment on HMRC website and see if what you will be doing qualifies

Bear was right!

Oh Snap. I'm tired.