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Where Taxpayers and Advisers Meet

Primary full time job and side job

Billy1927
Posts:4
Joined:Wed Dec 01, 2021 2:51 pm
Primary full time job and side job

Postby Billy1927 » Wed Dec 01, 2021 2:56 pm

Hello,

Looking to potentially start doing some deliveries outside of my daily job, for some extra monies.

A few questions that I’d really appreciate some insight on please. If we assume I make £500 in each tax year on top of my full time primary job…

- what would I pay in taxes.
- additionally, could I claim mileage (45p a mile) for the mileage done for this side hustle?
- any other things to be aware of?

Thanks so much!
Billy

Billy1927
Posts:4
Joined:Wed Dec 01, 2021 2:51 pm

Re: Primary full time job and side job

Postby Billy1927 » Mon Dec 06, 2021 11:18 am

Would really appreciate any input on this :)

darthblingbling
Posts:456
Joined:Wed Aug 02, 2017 9:09 pm

Re: Primary full time job and side job

Postby darthblingbling » Mon Dec 06, 2021 1:04 pm

Will you be employed or self employed for this side hussle?

Billy1927
Posts:4
Joined:Wed Dec 01, 2021 2:51 pm

Re: Primary full time job and side job

Postby Billy1927 » Mon Dec 06, 2021 1:56 pm

Will you be employed or self employed for this side hussle?
I’d be self employed for the side hustle, with me being ‘contracted’.

darthblingbling
Posts:456
Joined:Wed Aug 02, 2017 9:09 pm

Re: Primary full time job and side job

Postby darthblingbling » Mon Dec 06, 2021 2:20 pm

Assuming it is genuinely one of self employment then for £500 of gross annual income you shouldn't need to do anything as you have a £1000 per tax year trading allowance. So would only need to register for self assessment and pay additional tax if turnover was in excess of £1000 or if after allowable expenses a loss arose that you want to utilise.

https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income

Billy1927
Posts:4
Joined:Wed Dec 01, 2021 2:51 pm

Re: Primary full time job and side job

Postby Billy1927 » Mon Dec 06, 2021 3:07 pm

Assuming it is genuinely one of self employment then for £500 of gross annual income you shouldn't need to do anything as you have a £1000 per tax year trading allowance. So would only need to register for self assessment and pay additional tax if turnover was in excess of £1000 or if after allowable expenses a loss arose that you want to utilise.

https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income

Thank you for that. So to clarify, until I’ve made in excess of £1,000 from the side hustle, I won’t be able to claim back mileage or the like as business expenses?

darthblingbling
Posts:456
Joined:Wed Aug 02, 2017 9:09 pm

Re: Primary full time job and side job

Postby darthblingbling » Mon Dec 06, 2021 3:15 pm

If you can claim 45p per business mile from the business you are contracting too then essentially this should be added on top of the other income you receive from them.

If in total this gross income is less than £1000 then there should be no additional tax and nothing to do. If in excess you will probably need to register for self assessment and consider whether you want to make a claim for the £1,000 trading allowance or actual expenses (can't be both), tax will be due on the profit.

D&C
Posts:62
Joined:Mon Nov 25, 2019 11:35 pm

Re: Primary full time job and side job

Postby D&C » Tue Dec 07, 2021 8:27 pm

Thank you for that. So to clarify, until I’ve made in excess of £1,000 from the side hustle, I won’t be able to claim back mileage or the like as business expenses?
Who do you think you can "claim back" mileage from?

HMRC don't pay your mileage, they are just business expenses which reduce your business profit.

And iluntil your turnover tops £1,000 they are irrelevant really as you would be covered by the trading allowance


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