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Please Help! Tax Advice

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  • Please Help! Tax Advice

    Hello. I am currently employed by one of the main chains as a manager. However i have recently started doing few locum days every now and again. Do i need to register as self employed? When do i pay the tax on this additional money? Is it worth getting an accountant to sort it out it will that cost a fortune.

  • #2
    Re: Please Help! Tax Advice

    Hiya Newby82.

    Yes, you will have to pay tax. You might get away with cash in hand for a bit but gets nasty if caught. Taxman "guesses" how much he thinks you've underpaid and may also add a penalty.

    So, at some point write to your tax office (or contact the local one; there's a website) and tell them that at the end of the year you will have some self employed earnings. You can ether get a form, which you will have to submit by 31st Oct, or be given a reference, and can do it online by 31st Jan IN THE YEAR FOLLOWING the tax one in which you earned the money.
    The current tax year started on 4th April (most people use 1st) until 3rd April 2009 (again most people use 31st March) so if you started before March 31st 2008 you'll have to declare everything you earned as self-employed before 31st March 2008 by 31st Jan 2009.

    Keep a note of any costs you've had; travel to work as self-employed costs, membership of the RPSGB (you should be claiming that anyway), costs of going to Branch meetings (you had to meet prospective "employers" didn't you?) going to courses where you don't get travel expenses, PDA membership (acts as insurance). There are more such, and they are all deductible.

    Probably worth having ONE chat (again cost tax-deductible) with an accountant; one or two advertise in the PJ

    Have a look at the Locumvoice site too; there's recently been quite a good discussion on tax there.


    • #3
      Re: Please Help! Tax Advice

      you must let the HMRC know within 3 months of your extra earnings otherwise they will fine you £100 for failing to tell them you are receiving self-employed earnings.

      Alternatively if it's going to be a small amount (say under £2000) and this won't send you over the 40 per cent tax bracket (if you're not already in it) you can write to your tax office (usually written on the top of your payslip) and tell it how much you have in untaxed earnings for that tax year. It can then adjust your tax code and take tax for what it expects your earnings to be for that year. Although this avoids doing a tax return, it is only useful for small amounts of extra earnings and you don't get the benefit of offsetting expenses against tax.

      Either way, phone your tax office and explain - best to avoid the £100 fine if you're trying to earn extra cash!