|
|
| *The Commerce Journal>>>United Kingdom Taxes |
How much can I earn from a secondary income before I have to pay tax on the extra money? |
I have a full time job but I am thinking of starting a second job. It will only be a small extra income of around 200 pounds a month so will I need to pay tax on this. I obviously pay tax on my full time job, deducted with NI an wage slip and I thought I would just have to pay 22% tax on everything else I earnt from this little second job. However, a friend says if my second job does not earn me 5000 then I do not have to declare it or pay tax on it? Is this right? Unfortunately you were right in the first place and your friend is wrong! That also means that if your second job takes you over the higher tax threshold, you pay the higher band tax. In good news, the lower band is now 20% since the Budget, rather than 22%! The only way you would not have to pay tax on the income from your second job would be if the total income from both jobs came to less than the personal allowance, which is unlikely as that is 拢5035 a year! You will have to pay tax on all of it, I'm afraid. The Inland Revenue don't care how many jobs you have, they are only interested in your total income. That doesn't sound right to me. Unless you are doing a bit of cash in hand homeworking which you could pass off to the taxman as a hobby, you will be employed on the same basis as you are in your full time job & will pay tax at the same rate Yes you will have to pay tax on it I had two jobs at one stage and was able to split the tax allowance between the two jobs. I was actually taxed on the second job at a higher rate until I asked the tax man about splitting the tax allowance. The gave the higher portion of the allowance to my main full time job and the smaller part to the shorter hours. But I think due to the recent changes it is probably 20% on all off it. Your friend sucks. You pay 22% tax (soon to be 20%) and NI on everything over your annual tax allowance [c拢5200]. Whether first or second or third job. If you want to claim the tax back consider investing your second income as a SIPP pension. Basically, the government will pay the tax you have paid back into the scheme so you see all of the benefits of your hard work [well when you are 60] Government is of the mind that every cent you make is partly owed to them. I believe Benjamin Franklin said that in life, only death and taxes are certain. How right he was. Consult an accountant or a tax lawyer. You'll be money ahead... Paying the correct tax now puts you way, way ahead of the clown who tried to cheat and gets a letter a few years down the road telling him he owes thousands in back taxes, penalties and interest... |
| Tags |
| Atlanta Other - Business & Finance Other Taxes United States Taxes United Kingdom Taxes Spain Taxes Singapore Taxes Mexico Taxes Ireland Taxes India Taxes Germany Taxes |
| Related information |
You have a mixture of semi correct answers here. Code 503L is a basic PAYE code, giving the basic personal allowance which is due to everyone. If it has wk1/mth1 or X after it on your pays... Pay before tax and national insurance appears to be: 36 hours x 拢6.86 + 33% and 8 hours x 拢13.72 which totals 拢439.04. Does your husband have an agreed salary sacrifice of 拢37.00 for the c... 5th April.... This is posted on the UK site. What's a W2?... I'm in the south east too and I also used to have a tiny flat in the centre of a town and it was just stupid, but then again in towns you do get the services they offer, like getting you... You should take the opportunity to get yourself in order - make sure that you have chased all debtors, are on top of your creditors, organised your sales invoices and purchase receipts into ... your local tax office should be in the phone book, if not phone your local job centre and ask them, once you get through to the tax office tell them you want a form sent out for a tax rebate... Yes sounds like you can, I would try anyway - nothing to lose.... |
Commerce Categories--Copyright/IP Policy--Contact Webmaster |