Self employed part time plus full time employee - help!

[SoddingWeddings]

I'm a full time PAYE employee on about £32k.

I've just started doing some self employed admin work for a small business run by a family member. I'm genuinely self employed - work when I want etc and it's all permitted by my main employer.

I'm doing between 30mins and 2hrs 5 days a week (evening work) for basic admin and customer service type tasks. We've agreed £9/hour which I'm happy with. It's probably going to average about £250 month for the time being.

I'm stumped though when it comes to sorting my tax for this as I've never done it and HMRC website is clear as mud.

I will need to fill out the SE form for 2021-2022? I'm invoicing him for my time, so can be accurate in my reporting.

Can anyone advise please? How much should I put away from each invoiced sum to account for a tax / NI bill?

Hopeful bumping!

You need to set up a HMRC account and fill in the self employed tax return for 2020-21 yes. There is a place to put in your PAYE earnings

Gateway account!

Yes, you will need to register as self employed with HMRC and fill in a self assessment form each tax year. This should include details of your employed income. HMRC will then calculate how much tax you need to pay.

When you register as self employed HMRC will start charging you NI (class 4 I think?)

How much you need to set aside depends on what tax band you are in. As you are in lower rate I would set aside about 25% of your gross income, make sure you put it in a separate account as soon as you get paid.

Sorry class 2 NIS for profit under 9k. Class 4 over that.

Oh wow, thank you all very much!

I'll create a Gateway accountant shortly and start saving 25% of my gross.

I'm guessing I can't make payments to HMRC monthly in advance as it were? I'm REALLY terrible at saving money and tend to send important sums to my husband to keep it out of my own hands (yes really) if I'm trying to save for something but I really do need to get a bit of a grip at some point.

*account. FML

Why not just set up a separate savings account that is just for your TAX and NI so you know you mustn't touch it, perhaps one that only has one free withdrawal per year??

You could put it in premium bonds - safely tucked away and you might get the odd prize :)