Secondary job in CIS

[chantellehastie]

I have a full time job earning 30,000 basic and 2,200 allowance per annum. I am looking at doing a project for my brothers construction company that he owns. I would have to register with a CIS card and pay the £2.10 per week for being self employed. If the job is worth around £40,000 and i want to split the work and payment between this financial year and next year, approx how much tax will i have to pay on this second job? i.e. will this take me into the 40% tax bracket making me pay huge amounts of tax?

[Peter D]

As it is now the 1st of March how much are you goint to recieve this FY. You have 1 month 5 days. If it all came into 07/08 then you are looking at a £20K tax bill, £13.5K of which is at 40% on a straight tax calculation. Regards Peter

[CDavey9501@aol.com]

Daily apportionment of income if you prepare one set of accounts. You may be able to prepare accounts to the end of the tax year and apportion on the basis of the % of the contract complete. This may of course be just splitting hairs. You will presumably be on a CIS4 and so some of the income will be taxed at 18% (20% from April'07) at source with the balance paid by January 2008 and January 2009. There may be some tax savings or tax planning opportunities in trading as a limited company but you would need some proper advice before going down that somewhat complicated route.