Im employed + Self employed - What do i do with Inland Revenue?

[Gizmo100]

Hi I work for a company 4 days a week and have started a while back a small business for 2 days a week - I pull all the tax at 4 day a week job but in all honestly i didnt contact tax office because genuinely havent got round to it plus some days I had no income from self employed job or would make £5 over the 2 two days! Things are starting to get better but i have never done this before have worked and paid my tax all my life but have no idea how inland revenue will deal with me - I just have a feeling they will have me payig more tax than im actually bringing in so it means I shelve the self employed business or maybe im worrying for nothing - would appreciate your advice if you have any.

I have two jobs - am employed and 'self employed '. Just phone the your tax office up and tell them that you are self employed as well as employed.

You will contuue to pay tax as normalfrom your emplyed job but yyou will gat a tax return each year, which will you will inlcude details of both jobs but they will only calculate the tax that needs to be paid from your 'self employment' as you have already paid tax on the other.

However all this need to be done within 3 months (if I remember righly) from date of starting your 'self employment'. So you may have to have a think about that one.

If you work form home then you can claim an allownace for electricity , gas etc but only a proportion of the days that you work from home a week.

Also travel expenses if your work is based at home.

My first job only just makes the perosnal allownace so anything above that is easy to calculate at 20 %.

My advice is to put money away each month to meet that yeraly tax bill aswell.

Bascially with the tax return you aill only pay tax on what you have arn't so , so if you do only earn £5 per month from your other job then you will pay tax on that amount accumlated over the year.

If you have alot of expenditure on items etc then perhaps get an account to do the return for you .

Bascially with the tax return you aill only pay tax on what you have arn't so , so if you do only earn £5 per month from your other job then you will pay tax on that amount accumlated over the year.

Sorry should read ' what you have earnt'not arn't

Sorry about the typos - just got up .

First things first: You need to contact HMRC as soon as possible after starting to be self-employed to register for national insurance Class 2 . If you're not earning very much you might get an exemption but you really need to talk to them.

Have a look here HMRC self-employed for phone numbers and advice.

Then you will need to complete a self-assessment tax form. If you started your business this tax year (ending 5 April 2010), you will need to fill in the forms once the tax year has ended. Your earnings from your self-employed business will be added to your other earnings and the total tax payable calculated on that. If you've been paying PAYE monthly through your normal earnings, then you won't have much more to pay. (And you can always reduce the amount payable by deducting relevant expenses from your total self-employed income).

Sorry if this sounds a bit confusing - it really is best you speak to someone at HMRC to make sure you've got it all covered and they'll be able to help you with any queries.

Here's the link for the form to fill in if you have low earnings and qualify to be exempted from NIC class 2 CF10