Self assessment / “side hustle”

[IfIHadAHeart]

I work full time with a salary of £46k basic. With overtime this will be in the region of £50k, give or take.

I am interested in setting up a little earner on the side (dog walking) as my shift pattern gives me the flexibility to do this. I’m looking at the potential tax implications of this but it seems complicated. I believe I would get £1000 trading allowance without any additional tax liability, but obviously anything above that would immediately take me into the higher tax bracket. However….

Am I right in thinking a salary sacrifice pension reduces my income for tax purposes? I pay 10% of my salary into my pension which would give me another £5k to play with. I also have a car through work on a salary sacrifice scheme but I can’t find any clear guidance on whether this can also be deducted for self assessment.

I am just trying to work out whether the additional work would be worth it if I’m automatically going to lose 40% of it in tax.

I have recently given up my second job as I have had a pay rise in my main job, that just tips me into the higher rate tax bracket.

Its not worth me taking on an accountant to do my SE as I never earnt that much so just gave it up.

I am not advocating it and hadn't done it myself, but I dont blame anyone who pays tax on a main job, and earns a few quid here and there on a second job not declaring it.

Please don't do this illegally as intimated by a PP.

I think if you go on Moneysavingexpert forums you will find someone that can advise you. Or a quick call to an accountant.

You are correct about the pension, so if I were you I’d do it, but put in anything over the threshold into your pension. So the dog walking is still worth doing because your retirement pot will be bigger.

I’m not an expert but re the car, if it’s salary sacrifice it sounds like it’s already got tax relief, so you wouldn’t put it on self assessment. (Disclaimer that that is based on a little knowledge of salary sacrifice, not car allowances etc)