declaring extra earnings to the taxman

[johnk]

I'm on PAYE in a full time job. If I earn some money doing a temp job for another company how do I declare it?

[twix123]

Assuming that you earn more than your tax free allowance in your regular job, your second employer should deduct tax using code BR (Basic Rate) where you will receive no tax free wages. They should also include you in their end of year returns to the HMRC.

You should also apply to the HMRC to complete a Self Assessment Return at the end of the Tax Year, declaring your second income.

http://www.hmrc.gov.uk/sa/introduction.htm

[mike11111]

When i started work in the 60s I didn't pay tax as I earned less than the allowance. When I joined the RAF my wages went up and I found myself having to pay tax at the exorbitant rate of 5p per week. No one can work tax-free these days as even on the minimum wage a full-time employee will earn more than the basic personal allowance. Obviously a case for drastically increasing those allowances.

[trt]

If the Gypsy's in the recent TV series '' My Big Fat Gypsy Wedding ''' can get away with it, why shouldn't you?

[johnk]

I'm more likely to do a set piece of work like a coaching course for a sports club or a job for private individuals such as building maintenance. On the tax form do I have to declare all income already taxed such as interest on savings, share dividends?

[boxtops]

Yes - you need to request the form from the tax office - you can probably do it via the HMRC website. I work fulltime and my tax is deducted from that job, but I do an occasional one-off piece of work for another organisation which - as twix says - is taxed at your basic rate. The tax office just take account of that extra income when determining whether I stay or basic rate tax or move into an upper band (£37K p.a. in total takes you into 40% tax for the amount above £37k, possibly). It's very easy and it keeps everything above board. There has been a couple of occasions when the taxman's actually given me something back at year end! If you are doing this work before 5 April it's worth telling them about it now, so your records will be right at tax year end.

[ummmm]

John...Please don't think I'm just stating the obvious...but you'll know when you get the self assessment. If you're doing the second job on a self employed basis don't forget to keep all receipts relating to the job. If you have trouble filling in the form...just take all final figures to the tax office and they will fill it out for you...for free.

[boxtops]

^ typo - that should say "whether you stay on basic rate", not me!

[johnk]

Thanks everyone, nothings obvious with tax. It won't be much so may not be worth all the effort of form filling.

[gingejbee]

From your post, it sounds as though you are working as an employee for the second company. If so, self assessment does not come in to it. As an employee, the second employer should ask you to complete form P46 and they will send the form to their tax office, asking for a code to be operated on your earnings with them. Depending on what is put on the P46, they will deduct tax from your earnings at basic rate (code BR) or on an emergency tax code basis until HMRC tells them the correct code to be used. If you work for the second company on a self-employed basis, that would be when you would need to notify HMRC that you have started self-employment and that would be when self-assessment comes in to the equation.

[johnk]

Thanks Ginge, it would be as self employed.