Any accountants out there? Tax on a second job!

[TheRealDay]

Sorry, I know this is not AIBU but I need help!

I have started a second job, it's only a few hours a week.

I know I don't have to pay NI on it but how much tax do I pay and how do I pay it?

My first job takes me over the personal allowance so my second job should all be taxed.

But also do I pay tax on mileage I get paid and any physical expenses (for items) I claim back?

Citizens advice haven't been very helpful so far at all! The government website isn't very useful either! 😔

THANK-YOU for any help and for reading!

You pay 'basic rate' tax on 2nd incomes. Is it paid directly or through PAYE? If PAYE they should automatically set it as BR tax as long as you declare it as your 2nd job. Make sure you do otherwise they will take it as your primary and you'll start paying BR on your first instead and that'll be £ you likely will never see again.

You'll pay 20% tax unless your total earnings take you over the higher rate threshold. You don't pay take on expenses, including mileage unless you get more than 45p per mile back.

I have to pay the tax myself I've been told, I've been keeping invoices for all the work I've done, how much I've been paid and when etc.
I've had no idea how to / how much to pay though. 😬

Can I pay all my tax in one go at the end of the working tax year or does it have to be monthly?

Thank-you for your advice & help! 😊

Re your second income, are you self employed or an employee? If you are an employee they should be making deductions via PAYE. If you are self employed you will need to do a tax return and make payments on account (these are in January and July)

You'll need to do a tax return, phone HMRC and register as self employed and they send you all the details of what to do and when.

You need to talk to HMRC and see if they accept your are self employed, if you are employed the employer can't just decide you have to do your own tax. There are various rules to prove you are self employed.

If you have to pay the tax yourself, then you are self employed, not an employee.

You can register online as self employed, just go to www.hmrc.gov.uk and if this has started since 6 April 2017, then you can have a year end of 5 April 2018, and your first tax return will be due by 31 January 2019.

You pay 20% tax on all earnings over £11500 in the current year, and you also pay Class 4 NIC at 9% on all self employed profits over £8164.

Are you paye for your first job? Then self employed for the second?
Might be worth talking to an accountant as well as hmrc to work out the most efficient way of doing things.