General Advice Regarding Income Outside Of Full Time Work

[justwatson]

Hi all,

I had a read around the forums but wasn't able to find info specific to my query. I currently work and get paid as a full time employee (in Northern Ireland). As things are tight financially I am thinking about taking on some part time freelance work in the new year (and most likely not until the new tax year has started).

I have been on the HMRC site to try and make sense of how this would work for me but am unsure as to how I categorise myself. I wouldn't be self-employed and technically wouldn't be operating as an employee in this capacity. Is it a self-assessment tax return that I would be looking to do?

Sorry for what I am sure is a rather obvious question but I'm keen to get things lined up correctly (I've heard so many horror stories of people getting their tax returns wrong) before committing to it.

Thanks.

[Wesram]

Hi Justwatson

If you take on some freelance work in addition to your employment, you will need to register for self-assessment with HMRC on the basis that you are self employed.

Then when you come to fill in your tax return you would include your employment income subject to PAYE on the employments page of the return and any income (and associated expenses) of the freelance work on the business profits pages.

Hope this helps

Mark
Wesram Ltd

[justwatson]

Hi Mark,

Thanks for that. You have really helped made sense of things for me.

Would it be worth my time registering for tax now? I know that I would have to complete a tax return early next year but even if I didn't get any work this might help familiarise myself with process when there's less items to worry about.

Also, expenses? Interesting! Where can I find out more about that?

[LozaACCS]

I think you should not go further until you have clarified your status as a worker (for want of a better term).
If you are doing paid work you are either an employee (and subject to PAYE) or you are an independent contractor, you must be one or the other.
I would suggest that you use the Employment Status Indicator tool on the HMRC home site, if you answer the questions honestly HMRC are bound by the decision.