Paye and self employed status implications

robson1234

All

Im a first time poster so apologies if im in the wrong forum.

I work full time PAYE and have the chance to work extra doing take away delivery driving. I would not be employed but classed as a contractor and would invoice for services. Income is then paid into my bank account. Now I know I could just ignore taxes and work cash in hand but I dont want to do this and want to keep it legit. I have 2 questions

Firstly do I need to register as a company and do a tax return yearly or can I reduce my PAYE credits to account for extra income and then declare my income yearly and pay any shortfall?

Secondly in order to legally reduce my tax implications what expenses can I offset against my income? Im thinking I can claim for petrol, Car Insurance, Car maintainance, NCT, Health insurance?

I expect to earn approx 1k a month from driving if this helps and I would really appreciate any advice. Thanks

J.Ryan

1) Self employed returning a form 11 annually would be the best way for you on this, bearing in mind that all your tax credits and cut-off would already be allocated to your employment, so the tax liability might be a bit high when the calcs are done, depending on your other income, you might need to put half of the money you earn this way, into a bank account to cover your tax bill. Register as a business as opposed to setting up a company.


2) Keep track of all your motor expenses, best way is put everything on a card including fuel and services.

Keep a track of your mileage at the start and end of every shift, and your mileage at the start and end of your finincial year, that way you would have a way of taking the motor running costs as a deduction that would be very hard for the revenue to argue with, business miles as a percentage of total miles.



Drop me a PM, if you have any futher queries