Earning One Off Payments

[AliFlump]

Hi, if i were to do some work on the side of my current job (which they are aware of) and earn a one off payment of say £6k, what would i have to do in terms of tax etc?

Thanks

[Richard1966]

If you are working as an employee of a company they will deduct tax and NI at the appropriate rate (usually full for a second job). If however your self employed you should register with HMRC. Its all on their website

[ummmm]

Phone your local tax office. They will tell you what to do.

[Buenchico]

You've already had your full tax allowance, so that means that you'll pay tax on every penny of your additional earnings. (Assuming that your total earnings don't take you into a higher tax bracket, that will be at 20%. So that's £1200 out of your £6K gone already).

Annoyingly, if you've got two jobs you have to pay two lots of National Insurance as well. However as your second job would (presumably) be as a self-employed worker you'd only have to pay at the lower rate of £2.40 per week plus 8% of your profits above £5715.

http://www.hmrc.gov.u...ntro/selfemployed.htm

Chris

[jaydah]

sharrup aboot it & take cash

[tigwig]

A one off payment of £6k sounds very nice, any work going for me?

[looobylooo]

itd be tempting to just keep quiet about it .....?

[AliFlump]

Thanks Chris. And too you all, that has crossed my mind! I'll see how it goes

[ummmm]

Keep quiet about it if you want but if the person that pays you declares it then the tax man might come looking..