Tax implications for PAYE worker earning extra income

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paulocon

Registered User
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Hi all,

I am a PAYE worker.

I've been approached to do a few additional jobs seperate from my current employment.

These projects consist of software development. Not talking about a great deal of money altogether, maybe 3-4k.

Just wondering what the tax implications of this are, i.e. will I be charged at my standard tax rate, how do i go about making a tax return on this income, is it self-assessed?

Any help or pointers on this would be much appreciated.
 
You should register as self employed and complete accounts. Any expenses which you incur "wholely and exclusively" in earning this money (i.e. motor expenses) can be deducted as expenses and you will pay tax on the balance. If, for instance the standard rate cut off is 29,400, your current paye salary is 28,000 and you earn 2,000 (after expenses), then you would pay tax on the first 1,400 (29,400-28,000) at 20% and the other 600 (balance) at 42%.

Hope this helps.
 
With an income of 3-4k I would not have thought it necessary to register. You wont have a VAT issue either. Revenue would be likely to regard the income as incidental if about 10% or less than PAYE. You can deduct expenses as mentioned on an 'incurred' basis.
 
Hi,

Another question on this.
As part of the work i am doing in addition to my PAYE job (seperate), I incur hotel expenses.

In addition, I have a broadband line installed for this purpose. Are these tax-deductible. Do I asses my two jobs seperately as effectively I am self-employed in my second job.
 
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