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tax advice on "extra income" job

2 replies

nitsparty · 31/01/2010 23:06

I have a good job around 30k but have just taken on extra job as carer for a disabled friend. I run errands, shop, do prescriptions and look after him and his house when he goes into hospital. He pays me £320 per month from his care package which I take straight to the supermarket and buy loads of food and take to him-he cooks me lovely meals . It helps to stretch out his very meagre benefits and I get the nice hot meals. He can?t have the money directly-it must go to a carer.
It all has to be above board and taxed properly. Does anyone know the tax implications for me? How much can I earn before I lose more of it to the tax man than I get? If you don?t know, do you know someone who does?

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mranchovy · 06/02/2010 23:23

I am guessing that you are receiving this money as an employee and you get a pay slip? And this pay slip shows a tax code of BR and £64 tax deducted?

You won't have any further liability until your total earnings reach £37,400 plus your personal allowance, which is probably £6,475.

So £43,875 less 12x£320 means you can earn £40,035 (if my mental arithmetic is working) in your main job without having to pay any more tax.

nitsparty · 06/02/2010 23:51

thanks very much for this advice. best wishes.

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