Second Job.

A question about : Second Job.

Hello All and Good Morning.

I'm currently in full time employment and pay the usual tax and NI on my earnings. I've been offered some free lance work which could be around Ј500 one month and then maybe nothing the next. I can't say exactly how much I'll earn but I do know that I'll have to raise an invoice which they'll pay by cheque at the end of any month. I then need to notify the tax man and pay the usual. My questions to you knowledgeable people are: -

1. Can I pay the tax at the end of the Year via a tax return application.
2. In order to do this do I have to register as self employed?
3. If I do register as self employed I've been told that I would pay NI to the sum of Ј2.75 per week, that's even if I don't earn anything, Is that correct? Seems extreme considering I'm already paying NI with my main employment.
4. If I don't have to register as self employed do I still have to pay NI on this second income and if so how is it done?

As you can probably tell from the above questions I'm a complete novice to this and do not have a clue.

Your help is greatly appreciated.

Regards, Burnsey.

Best answers:

• If the second job pays you as self employed then yes you register as self employed.
  At the end of the year you fill in a tax return and declare the PAYE income on that section of the form and the rest under the self employed section, make sure you work out if there are any allowable expenses you can take off the gross income to reduce what you pay tax on. You then pay what you owe.
  The NI you can opt out of if your earnings are below Ј5,885 for the SE bit, look up small earnings exception for the info.
  Ali x
• Thank you all for your response.
  As I won't earn more than Ј5885 between now and the 4th April I'll apply for the low earnings so I don't pay NI.
  I spoke to NI department at our local office and they have advised that the way Self Employed NI is currently payed is going to change. As of next year it will be part of the tax self certification form which is completed in January so I'll need to keep an eye on that but otherwise everything is very clear, Thanks to your help.
  Regards Burnsey.
• OK thanks.
  A quick question, i became self employed last night and I'm going to apply for low earnings today. What happens if i earned over Ј5885 after being granted the low earnings?
  Is it best to apply for this at the end of the tax year, maybe end of march?