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Where Taxpayers and Advisers Meet

multiple jobs and confusion

taxconfusion
Posts:2
Joined:Wed Jan 08, 2020 1:44 pm
multiple jobs and confusion

Postby taxconfusion » Wed Jan 08, 2020 1:48 pm

Hi All,

I find my self in a situation and i hope you guys will be able to guide me :)

i work on a payroll at a company and i want that to stay as it is.

as a phd, there are opportunities from time to time to take on extra work or become visiting lecturers. An opportunity has risen which i do not want to miss. However, if i get on to a payroll at the new place, it will mean too much tax deduction.

I want to minimize this but i am really confused on what to do and how to move forward.

Help and guidance will be much much appreciated.

jerome.lane
Posts:237
Joined:Mon Aug 12, 2019 8:41 am
Location:Sandhurst, Berkshire
Contact:

Re: multiple jobs and confusion

Postby jerome.lane » Thu Jan 09, 2020 10:06 am

Each new PAYE engagement should have a basic rate or higher rate tax code and you can defer NIC in certain situations. It depends on the amount of income as to what to do.
The alternative is to set up a limited company to provide ad hoc services. This may reduce overall tax liabilities although it will carry admin costs and time as well as potential risks if you are deemed to be employed by other parties.
I assume your current employment contract permits additional business interests.
You can always call me to discuss your options.
Jerome Lane
Tax Adviser
Telephone: 07943 005902

taxconfusion
Posts:2
Joined:Wed Jan 08, 2020 1:44 pm

Re: multiple jobs and confusion

Postby taxconfusion » Thu Jan 09, 2020 11:18 am

Each new PAYE engagement should have a basic rate or higher rate tax code and you can defer NIC in certain situations. It depends on the amount of income as to what to do.
The alternative is to set up a limited company to provide ad hoc services. This may reduce overall tax liabilities although it will carry admin costs and time as well as potential risks if you are deemed to be employed by other parties.
I assume your current employment contract permits additional business interests.
You can always call me to discuss your options.
Thank you for your reply Jerome.

workplace earning are about 40k and income from other places will be around 10-12k annually.

i love the idea of setting a limited company but unsure of how much it will cost

jerome.lane
Posts:237
Joined:Mon Aug 12, 2019 8:41 am
Location:Sandhurst, Berkshire
Contact:

Re: multiple jobs and confusion

Postby jerome.lane » Thu Jan 09, 2020 4:04 pm

Hi, unless you find a really cheap accountant, there will be limited benefits to incorporation given the costs and admin to run a company.
You are unlikely to be a higher rate tax payer, so the only sting in the tail is NIC.
Your external clients are likely to be put off by the admin of payrolling you and it might well be that the ad hoc nature and level of control is enough for you to fall within self employed status in which case, you should have a 20% income tax liability along with a littler bit of class 2 and 4 NIC on any taxable profits.
Please do contact me if you need help with your HMRC registration and tax return requirements. Good luck!
Jerome Lane
Tax Adviser
Telephone: 07943 005902


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