Getting more than one job, working two part-time jobs or self-employment are becoming more common nowadays. But when it comes to tax status, it maybe confusing to figure out tax responsibilities. Here we will be talking about 3 must-know if you got more than one job and it will be more understandable for your tax situation after that.
Declare earnings over £1,000
First thing first, what is defined as income depends on some circumstances, for example:
If you own and let property, the rental income is taxable.
If you earn over £1,000 and it needs to declare as earnings. This can be selling craft stuff on Esty or doing eyelash extensions as a side business.
PAYE & self-assessment
Usually, you pay tax on your monthly salary earnings which are under Pay As You Earn (PAYE) system.
But if you are considering making a bit extra money by working freelance for yourself, this may involve another tax system which is self-assessment. You must declare on your self-assessment tax return and pay by 31st January,2023. Important note for self-assessment return is, don’t forget to claim all the expenses you’ve got for example mileage, work-from-home expense and tools, etc. These are the common tax relief that people seldom claim.
Be careful with the tax code
Tax code is a way for HMRC to tell your employer what to deduct from your salary. When you have more than one job, you will have two tax codes, and you may have a chance to pay the wrong tax bill. Therefore, you need to be cautious to check the tax amount you are paying to.
