self employed and part time job

[Kyrae]

I've been self employed for a year and a half and am about to start a part time job. I understand that I need to fill out a P46, but I am confused over how my tax will be paid? Will tax on my part time job be taken out of my wages every month by my employer, and then i pay the tax on the money from my self employment? Or do i work out the tax on both jobs? How can I work out how much money i need to put aside every month to pay the tax? Any help would be greatly appreciated! :)

[King_Maker]

Effectively, you have 2 options.

Either use your Personal Allowances against your employed earnings, or use them against your self-employed earnings. The net result is the same, although there may be a cash flow advantage with the former option.

[deanshepherd]

If you do not tick any of the boxes on the P46 (as they will not apply in your case) then you will automatically be put an a BR tax code.

Assuming you are a basic rate taxpayer then you will have paid the correct amount of tax on your part-time employment and only have further tax to pay on your self-employment via self-assessment.


Dean Shepherd
dean.shepherd@mmi-online.co.uk
MMI Accountancy
www.mmi-online.co.uk