13:22 26 March 2013
If you run your own business and work as an employee, you are both self-employed and an employee. You will need to file with HM Revenue & Customs as a self-employed individual.
If you are working two jobs, such as running a business and working as an employee somewhere else, you do not want to earn over £150,000 a year as an individual. Why? You will fall into the 50per cent tax rate instead of the 40per cent, or the basic rate.
Even if you do not fall into the 50per cent category, working two jobs will affect your taxes in several different ways. Listed below are the ways it affects your taxes if you are working two jobs:
Ways to work two jobs and not pay a tax rate: Please note this is not cheating the government, and it is not illegal as long as you make sure that you do it correctly. The government says you can earn less than the personal allowance from both jobs combined to avoid having to pay taxes on your tax return.
In order to do use this legal scheme correctly, make sure you tell the government to use your personal allowance against the second and first job as well. This works for any amount of money you earn up to the allowance.
Consider whether it is better for you to keep working two jobs as you normally would, or to try this particular scheme.
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