Tax question for possible 2nd job

[pinkellifun]

I'm obviously self employed and paying tax as a childminder but as I've lost my main earner at present, I decided to apply for another self employed job as an audio typist. Does anyone know what I need to do in relation to tax and NI with this second job or do I just merge the two sets of accounts together? Need to find out for definite before I accept the job.

Thanks in advance

[Koala]

When you file your tax returns next, you will be asked if you have any earning from other jobs, this is when you declare your second job, so you need to keep your accounts separate for each job and just file figures for both jobs separately but on the same tax return. You will still be accountable for the tax payable as a self employed person so keep ALL your EXPENCES up to date. And double check your allowable expences for your typing job with the IRS.

[Chatterbox Childcare]

When you say that you are se on the tax return it asked you how many businesses and you will enter 2. It will then give you two sections to complete so keep separate accounts for both

[pinkellifun]

Thanks. :)

Do you know whether I get charged a higher rate for the second job or just the same rate?

[MrAnchovy]

All of your self employed earnings (i.e. income minus expenses) will be added together. You will pay Class 4 National Insurance at 9% on anything over £7,605 (up to £42,475 when the rate reduces to 2%).

Then all your other income will be added in, and any reliefs taken off. You will pay Income Tax at 20% on anything over your personal allowance, normally £8,105. If your income is £34,370 more than your personal allowance (so normally £42,475 in total), you will start to pay tax at 40%.

[pinkellifun]

All of your self employed earnings (i.e. income minus expenses) will be added together. You will pay Class 4 National Insurance at 9% on anything over £7,605 (up to £42,475 when the rate reduces to 2%).

Then all your other income will be added in, and any reliefs taken off. You will pay Income Tax at 20% on anything over your personal allowance, normally £8,105. If your income is £34,370 more than your personal allowance (so normally £42,475 in total), you will start to pay tax at 40%.

I pay Class 2 NI now - do I have to inform them of the change to Class 4?

[MrAnchovy]

You pay both Class 2 and Class 4.