This video was immensely helpful! Thank you so much for this; I was really confused as to whether to register as a limited company or sole trader, first of all and then what to do with my finances in terms of tax. I hadn't even considered National Insurance. I am now perfectly clear on all fronts - thank you!!
@iamsn1perwolf732 working on it this year, past few years been in and out of work with redundancies but looks promising in 2025-2026...can't believe 4 years gone so fast!
I think this is the best video I have seen so far. I cannot understand why accountants are not responding to me for help in doing my books. I am only just starting and want to get things right. The tax has not got back to me other than to say I already have a UTR number which I do not know about. But yeah I enjoyed the video
Hi John, sadly the tax office are super slow right now, partly time of year (just in insanely busy in the hmrc and tax world). Hope you managed to get it sorted! If you needed to talk about getting accountancy support you can always get in touch with my team.
to be honest this is the main reason why I am not starting any hustle side work as things are too complicated in particular that day job is automatically taxed, thanks for the great video
Please do start that business. Get some pro help if you need it, but yes although there are some rules and things to do, and some tax to pay, but please earn that extra money. Even with the extra tax is still more than you'd be earning not doing it! You never know where it could lead. We see people every day starting businesses from the bedroom that turn into a full time deal in no time.
i pay high tax doing both getting swing of doing them both if u dont feel brave get an accountant the 300 quid and only need them once a year and its classed as an expense paying for one dont shy a way from doing what u want because its uncomfrotable everything is at first
I'm washing Paris Hiltons dirt how much and when do I get paid ? My child is in house is house not car or van ? ? That was the second trailer gone ? Where's my performing arts grants ? How do get per son al in de pen dance. Paymen,ts?
I’m employed and occasionally do some self-employed work. This year, my self-employment income was less than £1,000. However, when I completed my self-assessment, it showed that I need to pay tax on my employed income. I’m not sure why this happened. Does anyone know what could have gone wrong?
My question is - how does it actually work once it comes to paying the tax? You’ve filled in your self assessment, included your employed and self employed income and you’re told how much you owe. Will HMRC change your PAYE tax code to cater for the additional self employed income (this would prevent you from having a lump sum to pay at the end of the year), or do you get a choice to pay it separately and all in one go? Like what actually happens next? Hope this makes sense
You normally just get a bill to settle by Jan. If they change your tax code when you input it all next year in the tax return, you will have paid more tax than needed for just your job income, so they will effectively offset this against the other tax due. Any difference is sorted in the next payment(s). If you’ve overpaid you’d get it back
I have been primarily self employed for 4 years now. Over the CoronaVirus Lockdowns and Pandemic my music teaching took a dive-bomb and I applied for the taxable SEISS grants. I forgot they were taxable and am now paying next years tax this year on a monthly basis. This has meant my 'income' appears far higher than it actually was. In normal times the amount I had earnt would not have been taxable and has now crossed a threshold and I am paying premium on a defected income. This situation has left me short and sitting at the lower point of my overdraft regularly, and the short of it is that I have taken part time employment to supplement my income. As I have not yet done my tax return for 21-22, I am not being taxed or having NI taken off my salary. How do I declare this in the next financial year on my tax form? Do I NEED to declare it, as it will eventually end up taxed by the company anyway? How do I work out my SE tax whilst also employed? I am expecting it to be SE income declared on top of that financial years income. I am cloudy on this issue and worried about it already even though I am a year away from needing to do anything about it. Is there anything I can do on this years Self Assessment to prepare myself for next year? I appreciate this is a very specific and large set of questions, so any guidance or general advice would be great!
Quite a lot here which I can’t answer in a comment without a lot more questions I’d need answering, but some highlights to help: Tax return needs all income in the tax year. There is a box to enter any tax paid from your employment on so it takes this into account when it gives you the tax bill If you are paying ‘payments on account’ get that 21-22 done because it might well turn out youve paid to much.
Because it would be unfair for you to receive untaxed income at a level vs another in a comparable situation. Tax people want their cut of it all :- ) Otherwise would be a very weird system; like how do you manage when you don't pay income on the self employed income? If I do a few hours a week and pay a tiny amount of tax, and then have £80k self employed income, should I pay no tax? :- ) Difficult, which is why the system gets so complex. The way it is now, all the income is going in one bucket and allowances being applied, throwing out a tax bill. Your tax in the job is just covering that income. Hope that helps - ) It's not better news I know....
I'm a full time self employed gardener and already do a self assessment. I want to start a part time eBay business aswell. Do I have to do a separate self assessment and get another UTR number? Many Thanks!!
I’ve just watched a HMRC webinar no better knowledge as a sole trader but this video has been a great help. It’s wanted to confirm they said a garden office built for part business usage (sole trader, complimentary therapist working 2 days a week)can not be offset against expenses. Is this correct?
so when i do a tax return for my self employed and paye job at the same time how do i do both on 1 tax return when i need to claim on both and have 2 different campanies names and paytoll numbers
There are different pages within the tax return. You can also have multiples of some pages, so if you had 3 jobs you’d have 3 sets of employment in pages in the return.
Great video. What confuses me a lot in their system is that for example, I already have a ft job and pay tax every month. When I had to fill my self-assessment from a side hustle, I had to add info/amounts related to the ft job as well, in order for the HMRC to get to a final total income. Then I could see how much I had to pay them back...it made me feel I paid twice in my ft job...very weird. Wonder if I've done something wrong.
That sounds normal. Even though they know your income/tax paid in job is a needs to be taken into account with other income to give you an overall tax bill. If you look at the ‘tax calculation’ you should see you are basically ‘charged’ the tax on your income, but then lower down the deduct the amount you’ve paid in your job.
@@HeelanAssociates Thanks for the reply. Something is definitely wrong then as I can only see under 'tax calculation' the total amount earned in both job as 'total income', minus personal allowance of 12.570 (standard) and the equal total on which tax is due...
You need ur P60 PAYEE code when u do ur assement and ur earnings off ur p60 and the tax you paid write all that in your employment section you find all this infor to file ur employement income on ur P60 thats issued every april put any milage down if u get paid fuel back in allowable exepnses hope this help uk !
If I have registered for self assessment and am nowhere near the threshold to pay tax, is it possible to unregister until I actually need to? The reason I originally registered no longer applies and I don’t need the extra stress while juggling the day job, side hustle and family life.
Can i register self-employed whit only 15-20 hours per week. And im working seasonal housekeeping in a caravan park (March to November)for a nother 8-10 hours contract.
I have full time job employed 25 thousand a year but I want do Amazon flex part time earn roughly around 2-3 thousand per year how do I go about this with my tax
You might find being a sole trader and seeing how it goes works well, bearing this in mind SELF EMPLOYED - YOUR FIRST £1000 IS TAX FREE! (TRADING ALLOWANCE) ua-cam.com/video/J8j1GAZRAT0/v-deo.html
If I got it right.. :) Basically total income self employed + employed comes under one bucket to be taxed (there is no separate allowance on self employed income?) However, with National insurance it's counted separately (one for employed and then different allowance under self-employed?)
Hi Dan, really loving your simple and easy to understand "language". Apologies in advance for a basic question. Just recently opened a sole trader account to keep things "separate". However prior to it I used my other personal debit cards for business expenses. I have all receipts and backup if required. Can I still claim them on my 1st self assessment next year! :) Thanks again for a speedy response:)
Hi there, short answer is yes if they were for that trade/business then how you pay doesn't really matter. It's great you've got it more organised moving forward though!
Hi ihave full time job which pay £30,000 and a side hustle which I earn £1,500 the online tax calculator is asking for over £6,000 which doesn't seem right. I don't understand how the extra £1,500 I have received means I have to pay a £6,000 ... in tax......more than I earn in profit
It sounds like it might be calculating total tax including job income. If this is your tax return make sure you've shown the tax you've paid in your job to offset.
If I’ve only earned £1000 in the first month and don’t work and I’m mostly selling old stuff I no longer want and just buying stuff I need with that money earned do I start paying tax past the £1000 ?
Quick Q on NI. I have a work pension of ~6k pa, and a self employed job that pays ~10.5k after expenses (ie profit). As the 6k from (as I see it) PAYE is below the NI threshold = I am not due to pay any NI. As the £10k Profit from S/Emp is below the £11,909 threshold = same again. Am I right?
Great advice thank you. Thinking of starting a handyman business. I earn 39k in my main job so how much would I pay in tax if I earned say 5K in my extra job? Thank you
Thanks for great videos. Hi i have a public sector job and am also a limited company director with my wife as shareholder. I do not take any salary from the company so I do not have P60 or paye reference no. My question is when I am filling self assessment and I want to claim expenses like mileage etc how can I do that? Without filling the PAYE reference the form runs into error and I cant complete self assessment. Thanks in advance Ash
If you mean the mileage on behalf of your own limited company, you usually do this as a claim in your company records, rather than as an income tax claim (so wouldn’t put it in the personal self assessment).
I’m books in and I started a self employed income too. I had zero earnings last year self employed and went into the high tax bracket in my full time employment. So I now owe child benefit back to HMRC. Can I offset that at all if I had no earnings in my sole trader status?
Very helpful video, thanks a lot! My main worry is that my employer would not want me working on a side business whilst employed. Can they find out from the fact I’d be paying more tax? Or any other way, say I formed a company would they be alerted I was a director of a new company? Thanks again!
This actually inspired part of a video so thank you, but in short there shouldn't be any practical way from a tax point of view of them knowing that you've got a business. If you formed a LTD if they searched for you its possible they could see you on the public record. Again they wouldn't be alerted but if were actively searching could find you. There is no register for a sole trader like this however. The more practical point is, if you are going to be advertising your services, they may well come across you!
NIce video; what would be really nice would be a walkthrough the tax form itself! So many confusing questions, for example "any other income?" - do I put my employment earnings here, or has my employer already paid that tax? tax codes???? what sort of accounting? does reading through my bank statement count as "cash basis"?
Hi Peter, Glad you enjoyed the vid. Yes the forms are complicated once it moves away from the simple stuff sadly! We don't really do walkthroughs on this because there are so many situations that require different entries, and we have to be careful with this sort of thing due to our professional body restrictions. All that said, it's also kinda what we sell 😀 We do find HMRC themselves are actually pretty good at telling you were to put things though if you ever are stuck and really want to do yourself, just can be wait times on the phones...
One more question :) I think I see the answer to this question already but for some reason can't find it now.. I'm a sole trader and dont want someone else to use my company name, can I register on Companies House as a sole trader to secure the name or is Companies House for LTD companies only? And would the only way to secure the name is to trademark ™️ the name instead.? Thanks
This was so helpful. I've recently started working a part time job while on furlough. My only question is, how does the 25% rule work? If i am paying 20% income tax and then 9% NI tax, isn't that 29% not 25%?
It is, and sometimes the 25% rule wont work. The reason it so often works even in this situation is due to when you have to pay the tax. Normally by time you've figured out what to pay and done your tax return you've worked a few months and put more aside. Also if you put the amount aside from total in, this is more than you need in most cases because you are putting 25% of your gross income aside, rather than a % of your profits. Hard to describe in text!
Do this👆👆👆👆👆👆 if you happen to need a proper Forex trading mentor, he has a working trading strategy that is consistent and guaranteed to earn you $1900 daily, I see a lot of people are suffering financially....this bothers me that is why i do this to help the little i can.
I have a question about seperate bank account; what type of account, can it be a savings account, personal account and does it have to be with the same bank or different one?
Can be different bank. The bank would say a proper business account, but from an accounting perspective it doesn't matter. Savings may not work as you might have a debit card and direct debits. Some further comments at point 6 here: www.heelanassociates.co.uk/setting-up-self-employed-or-sole-trader/
I work from home in both my employment and self employ, only just submitting first returns for my new business. I know how to input expenses around working from home in self employment (utility bills etc) but do I have to do this separately with my employer for their side of things? I work in the same home office in both jobs but at the moment my employed role takes up far more time. Should I go to them for this or can I add it into my self assessment?
Working from home claims for employment are a little more tricky, but you can claim here if you meet the conditions: www.gov.uk/tax-relief-for-employees/working-at-home This is a separate claim from the self employed one.
How are you keeping your records? In short you would just account for that cash in there. For your tax return you'd need a record of income, so as long as you have it, regardless of how they pay you, will be fine.
Not specifically, although there is some coverage here: ua-cam.com/video/gYXbRAc4cVw/v-deo.htmlsi=fAttRLs5Oz7Zy4Lf There can be a decent benefit to reporting a sole trade loss however (depending what you did with the losses), so if you have one completing a tax return could be beneficial from a tax point of view.
Hi this is super helpful. What happens if the calculation is ALOT more than you thought it would be. E.g I earn £24k in my teaching job and pay tax through paye. I then learnt £2275 in royalties from a tv programme I was in in the past. Bit the calculation of tac I owed was £1550!! It doesn't make any sense as I'm obviously only meant to pay 20% tax??
Hi Haley, First thing is to check if that £1550 has any 'payments on account' built in, which would be sorta 'tax up front' that may not be needed - its a very individual question. In pure tax terms that does seem to suggest something is quite correct in that calc.... but you may have multiple things in play here. Sorry not one we can answer in a comment here, too much knowledge of the situation and sight of the docs needed!
Am I right in thinking that you may end up with NO income tax at all on your self-employment earnings to pay if your regular employment tax outweighs that figure? For example say I earned £20,000 from regular employment, and then I made £6000 from self-employment. I would pay £1,486 (not inc. NI) on my regular employment in taxes. I would also pay £1000 tax on my self employment income of £6000. As far as I'm aware your PAYE tax gets deducted from your self-employment tax on your self-assessment, so does this mean I would have -£486.00 to pay/0? Would be grateful for a clarification, thank you!
So you'd kinda stack your income (super simple example): £20,000 employment £6,000 SE ----- Add any extra Take away personal allowances etc What's left is taxed and the return will give an overall tax bill. It then takes into account whatever tax you've paid in your job and generates a bill for the difference. So say: £26,000 income, less full personal allowance £12,570 (as I'm typing) = £13,430 taxable. Say 20% tax = £2,686 It's likely you might only have paid £1486 as you say on job income, so *tax* bill (excluding NI) would likely be £1200.
@@HeelanAssociatesSo in other words, technically speaking you're only paying 20% tax on your self employment income, because 20% of 6000 is 1200. So does that mean when they say they "tax you on the total income", what it actually means is just your personal allowance gets used up by your regular employment income too? Because form this calculation it seems like you only need to worry about putting 20% tax aside from your self employment income, but you don't actually need to worry about setting any regular employment earnings aside to pay your tax bill (since those are deducted already). Am I on the right lines here? Thanks!
Heya..Sorry for the question. I am also looking online. What if your side hassle generates less than £6k for the financial year. Do you then need to pay additional NI. I can see there is £3.15 pw for above £6725. What about if it is below that?
Best way to answer this as it’s a little complex is link you here for a great article on it, covers your q www.litrg.org.uk/tax-guides/self-employment/what-national-insurance-do-i-pay-if-i-am-self-employed#toc-what-is-the-small-profits-threshold-
Thank you for these videos I have a question about payments on account when self employed and employed. Do payments on account apply to ONLY self employed income or both types? Thanks again
It’s odd in that they apply to your combined total tax bill. It’s usual however that your employed job is *generally* taxed correctly so in a combined tax bill you are normally paying just the tax on the other income.
Hi I am working full time in company 45 hours and on side I am working private jobs to and have to use the UTR code for invoice so end off the year how much I will ending up in tax for UTR self improvement
The tax will depend on the amounts you earn total. Your private self employed income will be stacked on top of your job income, then the tax return will calculate a bill. It will knock off any tax paid in employment and you will pay the difference each year.
I will be setting up as self-employed soon. However, I would like to know more about what HMRC uses our taxes for? (I ask because I do not want to contribute towards war and human oppression). What can be done about this? Anyone?
Whilst we’ve not looked in detail, this seems a good start assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1003755/CCS207_CCS0621818186-001_PESA_ARA_2021_Web_Accessible.pdf
Thank you for this video, it has been helpful. If I make a loss when I am self employed, how do I claim tax paid at my work place for the past four years.
Hi just wondering can I work part time as employed and claim universal credit but also start business as self employed? (It will be a while till the business will grow). Will I loose universal credit once I set up my business? Thanks 😊
The short answer is yes, but keep your info up to date online with your claim, to make sure you get the right amount. You don’t auto loose uni credit, it’s earnings based.
Super helpful video. Quick question...I'm looking to register as a sole trader but not take any income from the business. I want to re-invest all profits back into stock. How would tax work in this scenario?
Yeah tax return will have all your income on if they are asking for one. It’s in the return you can claim the £1000 trading allowance with a tick box. If your job tax is right there won’t be anything to pay there or self employment, so it’s just reporting.
This is probably best explained here: www.litrg.org.uk/tax-guides/self-employment/what-national-insurance-do-i-pay-if-i-am-self-employed#toc-i-am-employed-and-self-employed-do-i-still-need-to-pay-class-2-nic-
Just watched some of this video and will watch it all later as it seems to cover my situation. During 2023-2024 I was both self employed and employed although my self employed income was almost non existent as am an online seller but probabaly made less than £1000 that year. I found employment back in July 2023 and which ended in early Jan 2024. I received monthly payslips but no P45. I successfully filed 2 previous self employment tax returns without any issue what as before this used an accountant. This will be the first year of filing with both self employed and employed work. Can I used the monthly payslips that were emailed to me from my previous employer or do I need a P45 or P60 to complete the return for 2023-2024? Due to my low earnings I didn't want to pay an accountant and feel I've left it late anyway... Is it overly difficult filing a return given the details above and what else might I need. Many thanks in advance for any help.
You could in theory use the final payslip of the tax year (it will show year to date figure on it), although if you are completing using HMRCs tool they may pre populate that income from the data they have from your employer.
if i earn 25k in my main job and do deliveroo, just eat on the side can i put fuel through for expenses and can i put moped servicing through as expenses i will be using the moped for personal use for 60 miles a week and for second job about 300 miles a week confused as its not just for business use
As per my other question i am employed and self employed, but generally make less (on the side) than the £9881 Class 4 NICs limit, but do i always have to pay the Class 2 you state as £3.05/week if my profit is less than the £6515? The HMRC prompts me to do so voluntarily to protect my benefits (whatever those actually are), but its not clear whether I have to or not and more importantly what the consequences are.
It’s difficult to answer easily in a comment, but this will explain www.litrg.org.uk/tax-guides/self-employment/what-national-insurance-do-i-pay-if-i-am-self-employed#what-is-the-small-profits-threshold
Thank you for this vid. Got a question - does the £1000 or below where a self assessment is not required - does this reset every tax year? Plus the main job
Hi, great video, just to clarify do I pay as self employed tax only on the profit I make? Let's say I buy items for £5 and sell them for £5.5, profit vise it will take awhile to accumulate £1000. Apologies for dumb question.
Thank you for this video, very well explained. Still have some questions... I'm planning to launch my side hustle PT business. What I 'm not clear on is if/when I have to submit the tax return on my side hustle, would I pay tax only on the net income (income minus expenses) or on the gross income (expenses included)? Also, currently, my employer is doing my tax returns. Would I have to do my work tax return also combined with my side hustle or can still do separate only for the side hustle (and my employer will do my tax return as isl)?
Your employer doing your tax return sounds like an odd situation! If it's a self assessment tax return, would need to account for the side hustle business in it as well (as far as HMRC are concerned you are one 'tax reference'). You'd report gross income, and your expenses in separate boxes on the return, but are taxed only on the profit. In terms of when to do it, good graphic here: www.litrg.org.uk/tax-nic/how-tax-collected/self-assessment-and-tax-returns/registering-self-assessment
The tax rate is likely 40% on your profits and probably 2% national insurance, so a good 42%. You might even want to keep 50% to help manage any 'payments on account' and potential 9% NI you might have to make. You might find you actually overpay NI depending on the level of sole trader income and need to ask for 'deferment'.
Hello ,I'm working a full time job and recently found myself some weekend work from a different company the boss said it would be beneficial for myself to get a utr number instead of going paye is he right and why ?
Long answer this! First though, what’s the actual deal - are you employed or self employed? If your effectively employed it’s a risk / not correct to basically just say your self employed. Saves ‘boss’ tax, you loose holiday pay, pensions and other rights.
I have a friend who is in a band and has been for some years, they perform two nights a week and he says he earns around £280 a weekend, he also works full time 45 hours a week earning around 22k a year, he is concerned he might be investigated by the Tax of office for his earnings. And he now wants to go legit with his earnings, what do you suggest he does and will he have to declare all his past earnings?
He can make a disclosure to HMRC for those earnings he hasn't declared. If they were made in years with the trading allowance available (www.heelanassociates.co.uk/self-employed-1000-trading-allowance-explained/) might not be as bad as he is thinking. Moving forward should fill in a tax return.
I am not self employed, but I do want to know why many take away shops deal in cash? It seems to me that they pay £10 to hmrc and £20 to their pocket. Meaning they can afford luxury cars, big houses etc. I also want to know why self employed get away from,paying the correct amount of tax. For instance, they get allowance for using car for work, So do I, petrol or diesel to travel to and from businesses/ work, So do I, buying equipment for work, So do I because local governments only buy the cheapest PPE, at the same time putting our safety at risk. And so the list goes on. But being PAYE is an easy target to extract tax while self employed use accountants to dodge paying the due owed.
Hi Anthony, While the tax rates are slightly different for self employed, and some of the tax deduction rules, many cover the same type of expenses. If you are incurring equipment costs for your day job, it's actually often possible to get a tax deduction for example. While it would be rose tinted viewpoint to not think some takeways might not be underhand, most probably just dont want to pay card handling fees. Many of these services also hold your money for a little time, which can be a cashflow difficulties. The car rules for self employed are closely linked to that of an employee (when applied properly!). They basically say in many ways, if it looks like commuting, no tax relief; but if you are going to temporary workplaces, yes tax relief. This the same as employee. The self employed also don't get holiday pay, pension contributions however. There is also all the unpaid admin time to operate, insurances and other costs of business. I think it's a misconception most business owners are in the main rolling around with big houses and cars. Certainly statistically this is far from true. On accountants helping 'dodging' tax, there are some bad apples out there that put the professional to shame I am sure. For the most however they are here to help the owner pay what they should, and not more (or less). I actually think its a ridiculous state of affairs where as an owner you need to pay a professional just to understand what your actually tax bill is (right or wrong amount!). D
Have a watch here SELF EMPLOYED - YOUR FIRST £1000 IS TAX FREE! ua-cam.com/video/J8j1GAZRAT0/v-deo.html If you use this option it replaces you ‘real’ expenses.
This video was immensely helpful! Thank you so much for this; I was really confused as to whether to register as a limited company or sole trader, first of all and then what to do with my finances in terms of tax. I hadn't even considered National Insurance. I am now perfectly clear on all fronts - thank you!!
That’s great, glad it was helpful!
Topman, been on my mind for years and 2021-2022 may be the year for it 👍
Do it 👊
How's it going ?
Did you start it ?
@iamsn1perwolf732 working on it this year, past few years been in and out of work with redundancies but looks promising in 2025-2026...can't believe 4 years gone so fast!
@Onkarr the years won't slow down for us mate.
Glad you're acting on it !
The only thing that gets in our way is ourselves.
I think this is the best video I have seen so far. I cannot understand why accountants are not responding to me for help in doing my books. I am only just starting and want to get things right. The tax has not got back to me other than to say I already have a UTR number which I do not know about. But yeah I enjoyed the video
Hi John, sadly the tax office are super slow right now, partly time of year (just in insanely busy in the hmrc and tax world).
Hope you managed to get it sorted! If you needed to talk about getting accountancy support you can always get in touch with my team.
Fantastic video|! Thank you, super concise and I didn't even need to speed you up|!
Glad it was helpful!
awesome. thanks for your help. your videos are what's given me the confidence to start my own side hustle.
That’s great to hear!
Great advice
Clear and concise!
Thanks for all your help
Glad it was helpful!
Thank you for these videos! They are so helpful
Glad they are useful Evelin!
to be honest this is the main reason why I am not starting any hustle side work as things are too complicated in particular that day job is automatically taxed, thanks for the great video
Do not hold back. You will regret holding back in the future.
Please do start that business. Get some pro help if you need it, but yes although there are some rules and things to do, and some tax to pay, but please earn that extra money. Even with the extra tax is still more than you'd be earning not doing it!
You never know where it could lead. We see people every day starting businesses from the bedroom that turn into a full time deal in no time.
@@HeelanAssociates thanks a lot
i pay high tax doing both getting swing of doing them both if u dont feel brave get an accountant the 300 quid and only need them once a year and its classed as an expense paying for one dont shy a way from doing what u want because its uncomfrotable everything is at first
Thank you. I worked out much of this on my own, but good to ensure I was/am on the right track
Glad it was useful!
Really helpful video - probably the best one so far ! Thanks
Glad you enjoyed!
I'm washing Paris Hiltons dirt how much and when do I get paid ? My child is in house is house not car or van ? ? That was the second trailer gone ? Where's my performing arts grants ? How do get per son al in de pen dance. Paymen,ts?
Great video. Exactly all the right detail I wanted, clearly explained.
Glad it helped!
Fantastic video thanks! Helped answer some questions I had regarding setting up a "side hustle" 🙂
Glad it helped Chris!
I’m employed and occasionally do some self-employed work. This year, my self-employment income was less than £1,000. However, when I completed my self-assessment, it showed that I need to pay tax on my employed income. I’m not sure why this happened. Does anyone know what could have gone wrong?
Very helpful video! Thank you so much.
Glad it helped Carl!
Wow you are super helpful thanks so much!
Glad it helped!
Really helpful, great video thank you. Subscribed and will check out more videos, all explained in a great way.
Thanks Simon glad you enjoyed.
Woaw very helpful! Thank you.
Glad it helped!
My question is - how does it actually work once it comes to paying the tax? You’ve filled in your self assessment, included your employed and self employed income and you’re told how much you owe. Will HMRC change your PAYE tax code to cater for the additional self employed income (this would prevent you from having a lump sum to pay at the end of the year), or do you get a choice to pay it separately and all in one go? Like what actually happens next? Hope this makes sense
You normally just get a bill to settle by Jan. If they change your tax code when you input it all next year in the tax return, you will have paid more tax than needed for just your job income, so they will effectively offset this against the other tax due. Any difference is sorted in the next payment(s). If you’ve overpaid you’d get it back
How many years you have to show pay slips or income if you are first time home buyer or for mortgage
Lenders vary, sometimes is as small as 3 months payslips for an employed person, sometimes it’s 2-3 years tax return for a self employed!
Great video, Is there an updated version of this? Has anything changed since this was created in 2020?
We have down to do a new one just to freshen up, but concept is totally the same.
I have been primarily self employed for 4 years now. Over the CoronaVirus Lockdowns and Pandemic my music teaching took a dive-bomb and I applied for the taxable SEISS grants. I forgot they were taxable and am now paying next years tax this year on a monthly basis. This has meant my 'income' appears far higher than it actually was. In normal times the amount I had earnt would not have been taxable and has now crossed a threshold and I am paying premium on a defected income.
This situation has left me short and sitting at the lower point of my overdraft regularly, and the short of it is that I have taken part time employment to supplement my income. As I have not yet done my tax return for 21-22, I am not being taxed or having NI taken off my salary. How do I declare this in the next financial year on my tax form? Do I NEED to declare it, as it will eventually end up taxed by the company anyway? How do I work out my SE tax whilst also employed? I am expecting it to be SE income declared on top of that financial years income. I am cloudy on this issue and worried about it already even though I am a year away from needing to do anything about it.
Is there anything I can do on this years Self Assessment to prepare myself for next year?
I appreciate this is a very specific and large set of questions, so any guidance or general advice would be great!
Quite a lot here which I can’t answer in a comment without a lot more questions I’d need answering, but some highlights to help:
Tax return needs all income in the tax year. There is a box to enter any tax paid from your employment on so it takes this into account when it gives you the tax bill
If you are paying ‘payments on account’ get that 21-22 done because it might well turn out youve paid to much.
What's always confused me is why I have to pay tax on self employed income PLUS my regular employment income (taxed already through payslips) ?!
Because it would be unfair for you to receive untaxed income at a level vs another in a comparable situation. Tax people want their cut of it all :- )
Otherwise would be a very weird system; like how do you manage when you don't pay income on the self employed income?
If I do a few hours a week and pay a tiny amount of tax, and then have £80k self employed income, should I pay no tax? :- ) Difficult, which is why the system gets so complex.
The way it is now, all the income is going in one bucket and allowances being applied, throwing out a tax bill.
Your tax in the job is just covering that income.
Hope that helps - ) It's not better news I know....
@@HeelanAssociatesthis is the news I did not want to hear lol
I'm starting to think I'm to thick to be self employed ,how much can a accountant do to help to keep numbers and notes where they should be
Services are super varied amongst accountants, so worth speaking to a few about your needs and see what sounds like a best fit.
Very clearly organized and presented introduction and video. Explained exactly the situation I have. Thanks.
Glad it helped Clive!
great video😀 thanks
Glad you enjoyed!
I'm a full time self employed gardener and already do a self assessment. I want to start a part time eBay business aswell. Do I have to do a separate self assessment and get another UTR number? Many Thanks!!
No just one UTR number. You can report multiple sole trader businesses be completing multiple self employment pages within the return.
Absolutely helpful Thank you
Glad it helped!
Do you have any video for people who have a limited company as a side hustle?
Try this one BEING EMPLOYED AND HAVING A BUSINESS AT THE SAME TIME (LTD CO)
ua-cam.com/video/VATU3Q7p-7E/v-deo.html
Hi Heelan, great videos but maybe if you can have illustrations on the video that would be great
Noted!
Thank you! So informative :)
Glad you found it useful!
Has much changed now in 2023 with regards to this video? Working a side project alongside full employment? Thanks
Very little! We considered doing a 2023 redo (and still might) but it’s very similar right now.
@@HeelanAssociates thanks
I’ve just watched a HMRC webinar no better knowledge as a sole trader but this video has been a great help. It’s wanted to confirm they said a garden office built for part business usage (sole trader, complimentary therapist working 2 days a week)can not be offset against expenses. Is this correct?
For a quite a few reasons, yes that's right. Although the internal 'gubbins' / furniture might be claimable, either in full or part.
so when i do a tax return for my self employed and paye job at the same time how do i do both on 1 tax return when i need to claim on both and have 2 different campanies names and paytoll numbers
There are different pages within the tax return.
You can also have multiples of some pages, so if you had 3 jobs you’d have 3 sets of employment in pages in the return.
@@HeelanAssociates thanks so much
Great video. What confuses me a lot in their system is that for example, I already have a ft job and pay tax every month. When I had to fill my self-assessment from a side hustle, I had to add info/amounts related to the ft job as well, in order for the HMRC to get to a final total income. Then I could see how much I had to pay them back...it made me feel I paid twice in my ft job...very weird. Wonder if I've done something wrong.
That sounds normal. Even though they know your income/tax paid in job is a needs to be taken into account with other income to give you an overall tax bill.
If you look at the ‘tax calculation’ you should see you are basically ‘charged’ the tax on your income, but then lower down the deduct the amount you’ve paid in your job.
@@HeelanAssociates Thanks for the reply. Something is definitely wrong then as I can only see under 'tax calculation' the total amount earned in both job as 'total income', minus personal allowance of 12.570 (standard) and the equal total on which tax is due...
Can you do a video on construction industry? on how subcontractors can save money on tax, and what reports they need to submit?
Sure, we can add it to the list. We did do this one, have you seen it? ua-cam.com/video/kGjnnKvudc0/v-deo.html
@@HeelanAssociates I ve seen it now)), up to the point, thank you very much
Cheers! Great help
Glad it helped Adelene!
question! i have a gov gateway account already, do i need to set up a new one as a solo trader for the purposes of tax?
Good question, depends on the taxes and set up. Good article here www.litrg.org.uk/tax-nic/how-tax-collected/online-tax-accounts
You need ur P60 PAYEE code when u do ur assement and ur earnings off ur p60 and the tax you paid write all that in your employment section you find all this infor to file ur employement income on ur P60 thats issued every april put any milage down if u get paid fuel back in allowable exepnses hope this help uk !
There is a new nuances to this, particularly around mileage (and expense claims in general).
If I have registered for self assessment and am nowhere near the threshold to pay tax, is it possible to unregister until I actually need to? The reason I originally registered no longer applies and I don’t need the extra stress while juggling the day job, side hustle and family life.
Yes maybe possible - contact hmrc and explain circumstances/ income sources - they may consider you don’t need it and retract.
Ok thanks got myself a receipt book
Great! Or 'Dext' as it's now called for some reason...
Can i register self-employed whit only 15-20 hours per week.
And im working seasonal housekeeping in a caravan park (March to November)for a nother 8-10 hours contract.
Yes number of hours isn’t a factor when registering.
Is a tax return required for a limited company director who is a full-time employee of another Company but has made no profit?
Tax return only needed if a) you have tax to declare, or b) hmrc have issued you one.
I have full time job employed 25 thousand a year but I want do Amazon flex part time earn roughly around 2-3 thousand per year how do I go about this with my tax
You might find being a sole trader and seeing how it goes works well, bearing this in mind SELF EMPLOYED - YOUR FIRST £1000 IS TAX FREE! (TRADING ALLOWANCE)
ua-cam.com/video/J8j1GAZRAT0/v-deo.html
If I got it right.. :)
Basically total income self employed + employed comes under one bucket to be taxed (there is no separate allowance on self employed income?)
However, with National insurance it's counted separately (one for employed and then different allowance under self-employed?)
Pretty much!
Hi Dan, really loving your simple and easy to understand "language". Apologies in advance for a basic question. Just recently opened a sole trader account to keep things "separate". However prior to it I used my other personal debit cards for business expenses. I have all receipts and backup if required. Can I still claim them on my 1st self assessment next year! :)
Thanks again for a speedy response:)
Hi there, short answer is yes if they were for that trade/business then how you pay doesn't really matter. It's great you've got it more organised moving forward though!
Is this after expenses when you give example of only earning 9k in one year?
Do you have a time stamp for the bit you are referring to?
Hi ihave full time job which pay £30,000 and a side hustle which I earn £1,500 the online tax calculator is asking for over £6,000 which doesn't seem right. I don't understand how the extra £1,500 I have received means I have to pay a £6,000 ... in tax......more than I earn in profit
It sounds like it might be calculating total tax including job income. If this is your tax return make sure you've shown the tax you've paid in your job to offset.
If I’ve only earned £1000 in the first month and don’t work and I’m mostly selling old stuff I no longer want and just buying stuff I need with that money earned do I start paying tax past the £1000 ?
*probably* not. If you’ve no income outside this *most* uk taxpayers can earn around 12.5k without paying tax.
Quick Q on NI. I have a work pension of ~6k pa, and a self employed job that pays ~10.5k after expenses (ie profit).
As the 6k from (as I see it) PAYE is below the NI threshold = I am not due to pay any NI.
As the £10k Profit from S/Emp is below the £11,909 threshold = same again.
Am I right?
Yes both jobs are considered separate for the calc so can end up with paying none or sometimes paying on both.
@@HeelanAssociates super. Thanks for the confirmation 👍
Thanks this very helpful
Glad it helped!
This is so helpful thank you :)
Glad you enjoyed :)
Great advice thank you. Thinking of starting a handyman business. I earn 39k in my main job so how much would I pay in tax if I earned say 5K in my extra job? Thank you
Likely 20%, plus potentially 9% (ish) NI, depending on the year.
fabulous thank you so much. Simple and effective :)
Glad you found it useful!
Thank you 😊
You're welcome 😊
Thanks for great videos.
Hi i have a public sector job and am also a limited company director with my wife as shareholder. I do not take any salary from the company so I do not have P60 or paye reference no. My question is when I am filling self assessment and I want to claim expenses like mileage etc how can I do that? Without filling the PAYE reference the form runs into error and I cant complete self assessment.
Thanks in advance
Ash
If you mean the mileage on behalf of your own limited company, you usually do this as a claim in your company records, rather than as an income tax claim (so wouldn’t put it in the personal self assessment).
I’m books in and I started a self employed income too. I had zero earnings last year self employed and went into the high tax bracket in my full time employment. So I now owe child benefit back to HMRC. Can I offset that at all if I had no earnings in my sole trader status?
Sadly if your income is over £50k you start repaying child benefit regardless of earning no extra money.
@@HeelanAssociates yes I know that, but can I offset any of that by claiming back tax for certain things??
Very helpful video, thanks a lot! My main worry is that my employer would not want me working on a side business whilst employed. Can they find out from the fact I’d be paying more tax? Or any other way, say I formed a company would they be alerted I was a director of a new company? Thanks again!
This actually inspired part of a video so thank you, but in short there shouldn't be any practical way from a tax point of view of them knowing that you've got a business. If you formed a LTD if they searched for you its possible they could see you on the public record.
Again they wouldn't be alerted but if were actively searching could find you. There is no register for a sole trader like this however.
The more practical point is, if you are going to be advertising your services, they may well come across you!
NIce video; what would be really nice would be a walkthrough the tax form itself! So many confusing questions, for example "any other income?" - do I put my employment earnings here, or has my employer already paid that tax? tax codes???? what sort of accounting? does reading through my bank statement count as "cash basis"?
Hi Peter,
Glad you enjoyed the vid.
Yes the forms are complicated once it moves away from the simple stuff sadly!
We don't really do walkthroughs on this because there are so many situations that require different entries, and we have to be careful with this sort of thing due to our professional body restrictions.
All that said, it's also kinda what we sell 😀
We do find HMRC themselves are actually pretty good at telling you were to put things though if you ever are stuck and really want to do yourself, just can be wait times on the phones...
so when I register and put my earnings I should minus £1000 if I only earn £2k for the year
For trading allowance? There is a box on the tax return for it.
One more question :) I think I see the answer to this question already but for some reason can't find it now.. I'm a sole trader and dont want someone else to use my company name, can I register on Companies House as a sole trader to secure the name or is Companies House for LTD companies only? And would the only way to secure the name is to trademark ™️ the name instead.? Thanks
Sadly Companies House is for LTD companies only. For protection of name, it would be trademark protection to look into.
This was so helpful. I've recently started working a part time job while on furlough. My only question is, how does the 25% rule work? If i am paying 20% income tax and then 9% NI tax, isn't that 29% not 25%?
It is, and sometimes the 25% rule wont work. The reason it so often works even in this situation is due to when you have to pay the tax.
Normally by time you've figured out what to pay and done your tax return you've worked a few months and put more aside.
Also if you put the amount aside from total in, this is more than you need in most cases because you are putting 25% of your gross income aside, rather than a % of your profits.
Hard to describe in text!
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Im paye full time. I did a one off job for 16k. I want to put 16k into my sipp. Can i put all this into a sipp without any tax? I
It’s unlikely unless a limited company is in place. It’s difficult to answer here as so much depends on the exact situation.
@@HeelanAssociates do I have to register as a company at all if it’s just a one off?
I have a question about seperate bank account; what type of account, can it be a savings account, personal account and does it have to be with the same bank or different one?
Can be different bank.
The bank would say a proper business account, but from an accounting perspective it doesn't matter.
Savings may not work as you might have a debit card and direct debits.
Some further comments at point 6 here: www.heelanassociates.co.uk/setting-up-self-employed-or-sole-trader/
I work from home in both my employment and self employ, only just submitting first returns for my new business. I know how to input expenses around working from home in self employment (utility bills etc) but do I have to do this separately with my employer for their side of things? I work in the same home office in both jobs but at the moment my employed role takes up far more time. Should I go to them for this or can I add it into my self assessment?
Working from home claims for employment are a little more tricky, but you can claim here if you meet the conditions: www.gov.uk/tax-relief-for-employees/working-at-home
This is a separate claim from the self employed one.
Gone self employed from January the 1st at the moment im getting payed in cash by all my customers how do I put that into my account
How are you keeping your records? In short you would just account for that cash in there. For your tax return you'd need a record of income, so as long as you have it, regardless of how they pay you, will be fine.
Do you know if it is ok to use cash basis accounting for your self employed earnings if you are also employed within the same tax year?
I contacted HMRC and they said being employed doesn't affect how I do my accounting for self employed earnings which makes sense.
That’s correct Jeff!
Yup totally ok, employment isn’t relevant to the cash basis decision here.
Do you have any more info in regards to making a loss as a sole trader while working full time?
Not specifically, although there is some coverage here: ua-cam.com/video/gYXbRAc4cVw/v-deo.htmlsi=fAttRLs5Oz7Zy4Lf
There can be a decent benefit to reporting a sole trade loss however (depending what you did with the losses), so if you have one completing a tax return could be beneficial from a tax point of view.
Hi this is super helpful. What happens if the calculation is ALOT more than you thought it would be. E.g I earn £24k in my teaching job and pay tax through paye. I then learnt £2275 in royalties from a tv programme I was in in the past. Bit the calculation of tac I owed was £1550!! It doesn't make any sense as I'm obviously only meant to pay 20% tax??
Hi Haley,
First thing is to check if that £1550 has any 'payments on account' built in, which would be sorta 'tax up front' that may not be needed - its a very individual question.
In pure tax terms that does seem to suggest something is quite correct in that calc.... but you may have multiple things in play here.
Sorry not one we can answer in a comment here, too much knowledge of the situation and sight of the docs needed!
Can I ask, if you decide to be self employed on the side, will your main employer be made aware that you have another income? Thanks
In short no. With a ltd certain info is out in public, as self employed only tax people know.
@@HeelanAssociates thank you so much 😊
Thank you! This was really helpful. Do you have any additional guidance about earning a sole trader income while on maternity leave please?
Hi Amy, sadly we don’t! I was trying to think of a resource to help but I can’t find one currently.
Am I right in thinking that you may end up with NO income tax at all on your self-employment earnings to pay if your regular employment tax outweighs that figure? For example say I earned £20,000 from regular employment, and then I made £6000 from self-employment. I would pay £1,486 (not inc. NI) on my regular employment in taxes. I would also pay £1000 tax on my self employment income of £6000. As far as I'm aware your PAYE tax gets deducted from your self-employment tax on your self-assessment, so does this mean I would have -£486.00 to pay/0? Would be grateful for a clarification, thank you!
So you'd kinda stack your income (super simple example):
£20,000 employment
£6,000 SE
-----
Add any extra
Take away personal allowances etc
What's left is taxed and the return will give an overall tax bill. It then takes into account whatever tax you've paid in your job and generates a bill for the difference.
So say:
£26,000 income, less full personal allowance £12,570 (as I'm typing) = £13,430 taxable. Say 20% tax = £2,686
It's likely you might only have paid £1486 as you say on job income, so *tax* bill (excluding NI) would likely be £1200.
@@HeelanAssociatesSo in other words, technically speaking you're only paying 20% tax on your self employment income, because 20% of 6000 is 1200.
So does that mean when they say they "tax you on the total income", what it actually means is just your personal allowance gets used up by your regular employment income too? Because form this calculation it seems like you only need to worry about putting 20% tax aside from your self employment income, but you don't actually need to worry about setting any regular employment earnings aside to pay your tax bill (since those are deducted already). Am I on the right lines here? Thanks!
Does this work if you provided Spanish language tutoring services?
If you have self employed income likely yes.
is this still standard and up to date advice?
Yes very little has changed. May renew the video this year!
@@HeelanAssociates Thank you for confirming!
Heya..Sorry for the question. I am also looking online. What if your side hassle generates less than £6k for the financial year. Do you then need to pay additional NI. I can see there is £3.15 pw for above £6725. What about if it is below that?
Best way to answer this as it’s a little complex is link you here for a great article on it, covers your q www.litrg.org.uk/tax-guides/self-employment/what-national-insurance-do-i-pay-if-i-am-self-employed#toc-what-is-the-small-profits-threshold-
Thank you for these videos
I have a question about payments on account when self employed and employed.
Do payments on account apply to ONLY self employed income or both types? Thanks again
It’s odd in that they apply to your combined total tax bill. It’s usual however that your employed job is *generally* taxed correctly so in a combined tax bill you are normally paying just the tax on the other income.
Hi I am working full time in company 45 hours and on side I am working private jobs to and have to use the UTR code for invoice so end off the year how much I will ending up in tax for UTR self improvement
The tax will depend on the amounts you earn total. Your private self employed income will be stacked on top of your job income, then the tax return will calculate a bill. It will knock off any tax paid in employment and you will pay the difference each year.
I will be setting up as self-employed soon. However, I would like to know more about what HMRC uses our taxes for? (I ask because I do not want to contribute towards war and human oppression). What can be done about this? Anyone?
Whilst we’ve not looked in detail, this seems a good start assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1003755/CCS207_CCS0621818186-001_PESA_ARA_2021_Web_Accessible.pdf
Thank you for this video, it has been helpful. If I make a loss when I am self employed, how do I claim tax paid at my work place for the past four years.
You can do it inside of your tax return, but some years may require a letter to HMRC.
Love this thank you !!
Glad you found it useful!
Hi just wondering can I work part time as employed and claim universal credit but also start business as self employed? (It will be a while till the business will grow). Will I loose universal credit once I set up my business? Thanks 😊
The short answer is yes, but keep your info up to date online with your claim, to make sure you get the right amount.
You don’t auto loose uni credit, it’s earnings based.
Hi Dan - thanks for the video - will there be another video on a 'Limited Company as a Side Hustle'
It’s on Dan’s list!
Also.... do you have any specific points you'd like covered on this?
Super helpful video. Quick question...I'm looking to register as a sole trader but not take any income from the business. I want to re-invest all profits back into stock. How would tax work in this scenario?
Have a watch of this one: ua-cam.com/video/meiBmOjQh0k/v-deo.html
Fantastic video and very helpful! I do phoography on the side of my main PAYE job, at current its
Yeah tax return will have all your income on if they are asking for one.
It’s in the return you can claim the £1000 trading allowance with a tick box.
If your job tax is right there won’t be anything to pay there or self employment, so it’s just reporting.
Thanks for the video! I'm employed and self-employed. Do I have to pay voluntary class 2 NICs if I'm already paying for NICs through my employment?
This is probably best explained here: www.litrg.org.uk/tax-guides/self-employment/what-national-insurance-do-i-pay-if-i-am-self-employed#toc-i-am-employed-and-self-employed-do-i-still-need-to-pay-class-2-nic-
Just watched some of this video and will watch it all later as it seems to cover my situation. During 2023-2024 I was both self employed and employed although my self employed income was almost non existent as am an online seller but probabaly made less than £1000 that year. I found employment back in July 2023 and which ended in early Jan 2024. I received monthly payslips but no P45.
I successfully filed 2 previous self employment tax returns without any issue what as before this used an accountant. This will be the first year of filing with both self employed and employed work.
Can I used the monthly payslips that were emailed to me from my previous employer or do I need a P45 or P60 to complete the return for 2023-2024?
Due to my low earnings I didn't want to pay an accountant and feel I've left it late anyway... Is it overly difficult filing a return given the details above and what else might I need.
Many thanks in advance for any help.
You could in theory use the final payslip of the tax year (it will show year to date figure on it), although if you are completing using HMRCs tool they may pre populate that income from the data they have from your employer.
I was self employed and now I'm employed my an agency. Will I be able to get a business visa card this way?
Do you mean bank visa or working VISA? Could you expand?
Do I need to open business bank account? Or can I use personal account
Thanks
Point 6 here expands on that www.heelanassociates.co.uk/setting-up-self-employed-or-sole-trader/
if i earn 25k in my main job and do deliveroo, just eat on the side can i put fuel through for expenses and can i put moped servicing through as expenses i will be using the moped for personal use for 60 miles a week and for second job about 300 miles a week confused as its not just for business use
Have you seen this one? ua-cam.com/video/PPnzNvLp3k8/v-deo.html
As per my other question i am employed and self employed, but generally make less (on the side) than the £9881 Class 4 NICs limit, but do i always have to pay the Class 2 you state as £3.05/week if my profit is less than the £6515? The HMRC prompts me to do so voluntarily to protect my benefits (whatever those actually are), but its not clear whether I have to or not and more importantly what the consequences are.
It’s difficult to answer easily in a comment, but this will explain www.litrg.org.uk/tax-guides/self-employment/what-national-insurance-do-i-pay-if-i-am-self-employed#what-is-the-small-profits-threshold
Thank you for this vid. Got a question - does the £1000 or below where a self assessment is not required - does this reset every tax year? Plus the main job
Yes it does it’s per tax year.
Hi, great video, just to clarify do I pay as self employed tax only on the profit I make? Let's say I buy items for £5 and sell them for £5.5, profit vise it will take awhile to accumulate £1000. Apologies for dumb question.
Thats right yes, tax on profit.
Thank you for this video, very well explained. Still have some questions... I'm planning to launch my side hustle PT business. What I 'm not clear on is if/when I have to submit the tax return on my side hustle, would I pay tax only on the net income (income minus expenses) or on the gross income (expenses included)? Also, currently, my employer is doing my tax returns. Would I have to do my work tax return also combined with my side hustle or can still do separate only for the side hustle (and my employer will do my tax return as isl)?
Your employer doing your tax return sounds like an odd situation!
If it's a self assessment tax return, would need to account for the side hustle business in it as well (as far as HMRC are concerned you are one 'tax reference').
You'd report gross income, and your expenses in separate boxes on the return, but are taxed only on the profit.
In terms of when to do it, good graphic here: www.litrg.org.uk/tax-nic/how-tax-collected/self-assessment-and-tax-returns/registering-self-assessment
What about if an employee of 20k income , Works as a self employed with income of 500£ do i need to declare this amount?
It depends, have a watch of this one ua-cam.com/video/J8j1GAZRAT0/v-deo.html
Hi, what percentage should I put aside as a Sole Trader for Tax every month considering that I have already a full-Time Job paying me over 50K ?
The tax rate is likely 40% on your profits and probably 2% national insurance, so a good 42%. You might even want to keep 50% to help manage any 'payments on account' and potential 9% NI you might have to make.
You might find you actually overpay NI depending on the level of sole trader income and need to ask for 'deferment'.
Hello ,I'm working a full time job and recently found myself some weekend work from a different company the boss said it would be beneficial for myself to get a utr number instead of going paye is he right and why ?
Long answer this! First though, what’s the actual deal - are you employed or self employed?
If your effectively employed it’s a risk / not correct to basically just say your self employed.
Saves ‘boss’ tax, you loose holiday pay, pensions and other rights.
Hi,if you already have a job employed do u still get the 1000 pound allowance
Yup it's purely for use with your sole trade, being employed will not impact it.
I have a friend who is in a band and has been for some years, they perform two nights a week and he says he earns around £280 a weekend, he also works full time 45 hours a week earning around 22k a year, he is concerned he might be investigated by the Tax of office for his earnings. And he now wants to go legit with his earnings, what do you suggest he does and will he have to declare all his past earnings?
He can make a disclosure to HMRC for those earnings he hasn't declared. If they were made in years with the trading allowance available (www.heelanassociates.co.uk/self-employed-1000-trading-allowance-explained/) might not be as bad as he is thinking.
Moving forward should fill in a tax return.
I find for my self assessment I’m still getting charged tax from my employed job for which tax have already been paid. Is this right?
Yes the return should work out you are due to pay tax on that, then deduct what tax you’ve paid (presuming you’ve put the figure in the right box)
@@HeelanAssociates many thanks.
I am not self employed, but I do want to know why many take away shops deal in cash? It seems to me that they pay £10 to hmrc and £20 to their pocket. Meaning they can afford luxury cars, big houses etc. I also want to know why self employed get away from,paying the correct amount of tax. For instance, they get allowance for using car for work, So do I, petrol or diesel to travel to and from businesses/ work, So do I, buying equipment for work, So do I because local governments only buy the cheapest PPE, at the same time putting our safety at risk. And so the list goes on. But being PAYE is an easy target to extract tax while self employed use accountants to dodge paying the due owed.
Hi Anthony,
While the tax rates are slightly different for self employed, and some of the tax deduction rules, many cover the same type of expenses.
If you are incurring equipment costs for your day job, it's actually often possible to get a tax deduction for example.
While it would be rose tinted viewpoint to not think some takeways might not be underhand, most probably just dont want to pay card handling fees. Many of these services also hold your money for a little time, which can be a cashflow difficulties.
The car rules for self employed are closely linked to that of an employee (when applied properly!). They basically say in many ways, if it looks like commuting, no tax relief; but if you are going to temporary workplaces, yes tax relief. This the same as employee.
The self employed also don't get holiday pay, pension contributions however. There is also all the unpaid admin time to operate, insurances and other costs of business. I think it's a misconception most business owners are in the main rolling around with big houses and cars. Certainly statistically this is far from true.
On accountants helping 'dodging' tax, there are some bad apples out there that put the professional to shame I am sure. For the most however they are here to help the owner pay what they should, and not more (or less). I actually think its a ridiculous state of affairs where as an owner you need to pay a professional just to understand what your actually tax bill is (right or wrong amount!).
D
Do You get sick pay, holidays pay? Self employed don't
So say if you earn £3000 in your side hustle as a sole trader, are you taxed on £2000 or the whole £3000?
Have a watch here SELF EMPLOYED - YOUR FIRST £1000 IS TAX FREE!
ua-cam.com/video/J8j1GAZRAT0/v-deo.html
If you use this option it replaces you ‘real’ expenses.