Please help me with tax question.

[ChlorinePerfume]

I have recently changed jobs. I have been at home for the last 2 years because DD was still at primary school and DH travels a lot so it was difficult for both of us to keep full time jobs down. Anyway DD now gone to secondary school so time for me to go back. During the 2 years I was at home I registered as self employed and worked a few hours a week as a swimming teacher (up to my tax limit). Now that I have gone back to a PAYE office job I will be a higher tax rate payer. I'm still doing swimming teaching on a Sunday morning, mostly because I really enjoy doing it, guess it is a bit like a hobby. Question is will this be taxed at the higher rate as well? I which case perhaps it is not worth hanging on to because regardless of how much I enjoy it, it does eat in to my weekend big time. I leave for work at 7 am and get home around 7.30pm so does not leave much time to do much during the week...

Tried to speak to someone at HMRC but after holding on the phone for ages I just gave up. Maybe I should write to them.

Thank you.

If your entire tax free/lower rate allowances are used by the paye job (ie they are coding you based on no other sources of income) then yes the additional income is hr. However if you only recently started working you may not be fully liable for the 2014-15 tax year.

Yes, any profits from self-employment will be taxed at your marginal rate, I.e. The rate you've 'reached' because of your other income. So if you're earning £50k in employment and £10k through self-employment then the self-employment is taxed at 40% meaning you pay 4k over to the tax man. There may be a bit of NI as well, depending on the level of self-employed income.

Thank you. I earn 50k + in my daytime job but the swimming is only about £50 per week. I think I'm fine for the tax year ending April 2015 but guess I will have to give up next April them. Pitty. But I think I would prefer to swim teach voluntary somewhere as cover rather than pay a large proportion to hmrc! Thank you very much for your replies even if it is not what I wanted to hear...