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bigl | 21:45 Sun 18th Mar 2007 | Jobs
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My partner is thinking of becoming self employed. While he's still working for his employer he's trying to build up a client group but people have told him he'll have to pay extra tax because this is like a second job. I say this is rubbish and he'll have to pay the 20% or whatever that one normally pays. Can anyone out there confirm this?
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I've got two jobs and on my second job I just pay normal rate tax on the full amount as my tax allowance is used by my main job.
Firstly dont forget to register with the revenue within 3 months of going self-employed, including any paid work he is doing now.
He could pay more tax if his combined earnings (afetr costs) take him into a different tax bracket, I think thats about �36,000 gross when he will start paying 40% on the bit above �36k.
when he fills in his self assesement form he will need to include any earnings from paid work (P60 has all the info he will need) The tax office will then calculate the total of extra tax he needs to pay. there is a small amount of offsetting against allowences but in the main it's 25% off the top. Bear in mind he will also be paying class 2 Ni contributions on top of the employed contributions. He may also need to pay class 4
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