PAYE job and CM income - what tax?

[Wendybird]

I am looking at taking a Saturday job in my 'professional' field whilst still doing CM during the week. Does anyone know how that will be taxed? I will earn under the tax threshold for the Saturday job, so presumably won't be taxed under the PAYE system. So I guess I'll just add the income to my self-assessment and pay tax on it that way? I don't expect to make any profit from CM this year and expect to carry over my start-up expenses into next year IYSWIM, will the second job income count against this or is each job taxed separately? I've never done a self-assessment (clearly!). Any help would be appreciated - I'm terribly confused :o

[Kiddleywinks]

From memory, and it may have changed since I last gave out this info in my former life 3 years ago so would be worth contacting HMRC for confirmation, but, you could allocate your tax code to just your self employed business, or to your employer, or split it between the two.

You only get the one tax allowance though, so you will still be taxed at the usual rates.
When you do your self assessment, at the beginning it asks if you were employed during the tax year, so you would enter the figures on your p60 for your employment including any tax paid, and if between the 2 jobs you earnt less than your allowance you would get a refund, if you earnt more you'd pay the tax due if that makes sense.

Mr Anchovy is the best person to ask, but I'd allocate my tax code to my employer and hope I got a refund next year :laughing:

[Rubybubbles]

When I was in a nursery my tax code got changed. I have submitted my 2011-2012 accounts already :littleangel: and with my P60 and number from NCMA book it worked it all out for me.

My tax code was 500T which meant I could earn 5000 before tax, so with Tax I paid through nursery my 'childminding' tax bill was small! (Infact I need to phone them as paid loads last year in advance from 2010-2011 and they still need another payment end of July:()

[tulip0803]

With my other job they take the tax off through PAYE and then when I do my tax return I have to fill in the employee and self employed parts and they re-imburse if I have paid too much tax IYSWIM.

I would put PAYE first as a friend of mine said that her job was a 2nd one and got taxed at higher rate and then got re-imbursed after her tax return.

You can always ring HMRC as Chrissie says

[MrAnchovy]

Assuming you don't have a P45 to give them but instead fill in a P46 (http://www.hmrc.gov.uk/forms/p46.pdf), how you are treated for PAYE depends on which box you tick. If you tick 'A' or 'B' to say you don't have another job, you won't pay tax if you earn less than £155pw. Note that HMRC use the word 'job' here without defining it - nobody knows whether it includes self-employment or not, but as everything gets sorted out at the end of the year anyway (in theory), nobody really cares.

At the end of the year, just fill in the details in an 'Employment' section and it will be fine.

You have to claim your start-up expenses on the day you start earning income. If this means you have made a loss for the year, you can carry that loss forward to reduce the amount of tax and Class 4 NI you pay on your childminding profits next year.