how much is a good amount to make each week?

[si36]

WOW the tax man is allowing you to earn over £5k tax free above your wages!!, ive never heard of that before, i know you only pay tax once you go over the £7,475 K (2011-2012) hresholds but you will be over that with your full time work.

 

Who did you speak to as i want there number

 

lol that's what they said who am I to argue with the tax man they did not even want me to do a tax return cause it was under but I keep doing them as I don't want to end up with a huge tax bill I can't afford lol

[si36]

lol that's what they said who am I to argue with the tax man they did not even want me to do a tax return cause it was under but I keep doing them as I don't want to end up with a huge tax bill I can't afford lol

 

ANd you only pay tax on your first or your highest income

[Andy Collins]

ANd you only pay tax on your first or your highest income

 

Not sure if this statement is 100% correct Your 1st or main job is usually taxed as normal, 2nd jobs are taxed at full rate, 40%ish think. BUt I've been out of employment for 15years so I wouldnt really know.

[Robert_S]

ANd you only pay tax on your first or your highest income

 

That cant be right man, So hypothetically if i take £25k as my first income then have another income of £16k i wont get taxed on the £16k? im pretty sure the tax man will want his share of the £16K!!

At the going rate of 20% and if i go over £37K he wants 40% of anything else.

 

As he wants his share of most of the money we make

[doobin]

AFAIK, second jobs are taxed at 20% unless you go over the higher rate threshold.

 

Would assumed self-employment on top of a main job was the same.

 

You're better off on benefits in this sh!thole of a country...

 

Good luck to you mate. Tax only goes to spongers who can't be arsed to do a proper days work. Makes me mad.

[Kev Stephenson]

Up until 2 years ago I was employed PAYE and running the tree co as a side line. I had to fill in a tax return each year and pay tax on the profit, even when that profit was only £3-4k.

 

You are allowed approx £5k in your second income without having to pay extra NI (class 2) by obtaining a low earnings exemption certificate, this does not apply to tax.

 

If it did I would be running a conifer cutting company declaring about £6.5k profit a year and running a sideline tree cutting co at £5k a year - no tax to pay, a log company at £5k a year - no tax to pay, etc, etc.

 

Your tax return takes into account the tax you pay on PAYE and you can have your tax code on your PAYE altered to pay the tax owed for your second income from your first but you do have to pay the tax - this is from my accountant. If you can prove otherwise by providing a link to the information on the HMRC website I will bow to your superior knowledge, sack my accountant and start a few new businesses!!

[Andy Collins]

From HMRC: If you have two jobs or pensions, it is likely that all of your second income will be taxed at the basic or higher rate - depending on how much you earn. This is because all of your allowances will have been used against the income from your main job or pension. If you are due to pay tax at the additional rate of 50 per cent, read the section 'Effect on your tax and tax code - if your income is above £150,000'.

A bit more: Avoid paying too much tax if you don't pay tax on your main job

 

If you don't pay tax on your earnings from your main job and you're not using all of your Personal Allowance you can tell HM Revenue & Customs (HMRC) to use what's left in your second job. If you don't do this you could end up paying too much tax. You can share your Personal Allowance across several jobs or pensions until it's all used up.

 

Example: your Personal Allowance is £6,475 (tax year 2010-11) and you have PAYE income from two jobs - income of £3,500 from your main job and income of £1,500 from your second job. You can tell HMRC to use £2,975 of your unused Personal Allowance (£6,475 less £3,500) from your main job against your income from your second job so that you don't have to pay tax on either income.

[chaffey]

Right here we go. I was under the same illusion as others on this forum about this very subject. If the tax man does come asking questions and you say you phoned and someone said you don't have to declare anything you'll need a minimum of times and dates and a name if not a reference number as you will not get away from the tax man. You do have to declare anything you earn however little it may be. I work for a housing association in the day and run my own business out of hours. These business' should be run as any others income and outgoings etc. Your books need to be kept up to date as the tax man might just want to have a look. Should you decide not to bother and you are caught you will be fined immediately and then you will be investigated!! You will probably find that you will run at a loss for the first couple of years if you have to buy new kit but however little you earn as profit you will be expected to pay tax on it!!! The only thing you can opt out of as you already pay in your main job, and as long as you do earn less than £5,500 is NI and i know as i already have the letter from HMRC.

I have to do a tax return every year so for those not doing it all i would say is be very careful otherwise one call from a jealous neighbour and you could be facing an immediate bill.

[windfall]

If it did I would be running a conifer cutting company declaring about £6.5k profit a year and running a sideline tree cutting co at £5k a year - no tax to pay, a log company at £5k a year - no tax to pay, etc, etc.

 

Your tax return takes into account the tax you pay on PAYE and you can have your tax code on your PAYE altered to pay the tax owed for your second income from your first but you do have to pay the tax - this is from my accountant. If you can prove otherwise by providing a link to the information on the HMRC website I will bow to your superior knowledge, sack my accountant and start a few new businesses!!

 

:lol:

 

quality

[si36]

Big can of worms opened in this thread me thinks lol