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Self employment question

3 replies

laura2323 · 26/10/2014 12:00

Just wondered if there is anyone who could help me out, tried googling but getting mixed results.
I am currently self employed, earning around £90 a week after expenses. I pay voluntary NI (£2 approx a week)
I have been given the opportunity to do some of my old work on a freelance basis, starting from 1 week worth of work spread put over the month Would this affect my self employment status at all? Do I need to inform HMRC of the extra job, I will only be on £10 extra for the week of freelance work. I will be based in a shop and using their equipment.

If all goes well on the freelance front I can hopefully use it as my main (hopefully only) job, and I will inform HMRC of the change. But this will be in about 6-8 months as I need to save up for the start up costs.

Will I get lumbered with a huge tax bill, as I know if in a PAYE situation the second job is always taxed more heavily (past experience) even if on the same pay as first job.

Thanks in advance

OP posts:
Protego · 26/10/2014 15:45

The test of self employment is set out clearly on the HMRC help pages - www.hmrc.gov.uk/employment-status/
If you are carrying on with the first mentioned SE job and this one is truly 'freelance' then you merely have another source of sch D income. With teeny earners HMRC are not too bothered so your best bet is to ring their helpline and get them to agree - as always make a note of the date and time of the conversation the number you rang and the full name of the person you spoke to. Given the level of the personal allowance it is unlikely that you will get 'a huge tax bill'. If PAYE is involved you will have both Sch E and Sch D income on your tax return and if you have paid too much tax you will get a refund. NB if you are owed money best get your return in by the paper deadline:
The deadline for paper tax returns to reach HMRC is by midnight on 31st October 2014, and the tax filing season opens on 6th April 2014. The deadline for online self-assessment tax returns is 31st January 2015.
All the best!

TalkinPeace · 29/10/2014 15:04

If you are self employed you can have as many clients as you like - that is the whole point of being free range (I have 80)

if the job is going to be PAYE basis then it will have no impact on your self employment

second jobs are taxed higher because you only get one personal allowance and the first job has used it up.

MirandaWest · 29/10/2014 15:07

Given your earnings then it seems unlikely you would be paying any tax anyway.

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