PAYE and tax return?

[jbailey]

If I earn a small amount outside of my PAYE job, do I have to set up a company to claim expenses against my small private earnings paid at day rate from a reputable institution? Is there a way of classifying being paid a 'day rate' for two days in one year, that would mitigate the tax paid?

Can I just put expenses down against that small earning on a tax return?

Additionally, with high savings but low income, if I earn more than my savings interest allowance - am I right to presume that I can't lump costs together for the two different types of income (paid work and interest income)? tbanks

[SteLacca]

You don't need to set up a company (in fact for a small amount it would be inadvisable to do so).

You can simply enter this as self-employed income or, if it really is a very small amount, simply include the net after expenses as "Other income" and include a breakdown of gross and expenses in the white space.

Beware that if you exceed the thresholds for Class 2 or Class 4 National Insurance you will have to include as self-employed income.