How to sort out accounts with other jobs as well

[singlewiththree]

I am going to be starting childminding in feb however I will still be doing my other part time job to keep money coming in.

Do you know how I go about sorting my accounts out for this?

When will I have to put my accounts in?

[sarah707]

You need to tell IR that you are now self employed as well as employed.

You should continue paying your tax & NI on your employment.

For self employed keep your books up to date with incomings and outgoings.

In April you will receive a joint tax return which asks about income from both employments.

They will decide if you need to pay tax depending on what that says.

Don't forget, if you are heading towards £6k income on your taxable employment, you need to put 20p in every pound away from all your childminding profit, so you have money to pay your tax bill.

Hth :D

[FizzysFriends]

I have got an excemption cert for NI for childminding as I pay NI as an employee. I haven't been childminding long so will be under the threshold you can do this.

[CCJD]

Hi there,

I have done part time employment and full time childminding for the last few years.

After this tax year is finished April 09 - you will need to complete a self assessment form just like if you were only self employed. You can complete this any time between April 09 and January 31 2010. It asks on there whether you have received any employed income and any self employed income and you need to check both boxes and you are asked to complete your P60 details for your employed income and then asks for your turnover and expenditure for your self employed income.

This tax year (where you have used your taxable allowance for your employed income) you will probably need to pay some tax on your self employed earnings - so as advised above put some of your earnings aside.

From April '09 though I would strongly advise you to ask work to tax you at basic rate tax - - you wont receive at much in your pay packet each month but it leaves your taxable allowance (£6000 for this tax year) free for when you do your childminding accounts and possibly no tax bill to save up for.

When completing your self assessment form at the end of tax year 2009-2010,the system automatically adds all income together, takes off the tax you have paid and will (hopefully) tell you that you have paid too much tax and send you a rebate.

Most childminders expend away around 2/3 rds of their turnover and can keep their net profit to below the taxable allowance which means you will need to pay no tax on your self employed income.

I have found for the past two years that I have received a rebate (repaid into my bank account within 4 days of submitting my return) as I have only just used all my taxable allowance on my self employment and I have paid too much tax through my employment, as I have not received the lower rate of tax on the first £2000 of my PAYE income.

I do it this way becuase I am a rubbish saver. I always land up with some emergency (dishwasher breaks etc etc) that I land up having to dip into savings and I know that if I used my taxable allowance on my employed income I would land up with a tax bill in January that I would struggle to meet.

The way I look at it is that I am in effect saving all year long and in January (becuase I always submit my self assessment at the last possible moment) I get a rebate - just what I need after christmas!!!

Which ever way you do it - you are in effect saving each money each month for your tax bill - either you are saving it with the inland revenue by paying higher tax throughout the year on your PAYE or you are sticking it in a very tempting account which you have access to. Only you know how strong you are.

Hopefully I have explained this clearly - let me know if you are more confused now than before you read my post!!!

[Rasharoon]

Wish I had of known all this before as I'm having to pay Mr Taxman £150 for the next 6 months. Have asked my employer (ie. my partner), to change my tax code to basic rate.