I have a fulltime work in UK and have an old business which give me some money every few months, I have my national insurance number as a full time worker, but now any money will come from my freelance work will come directly to my bank account, I want to know what steps to do to pay taxes if any for this freelance work and how they will calculate it while I am not sure how much I get per year exactly.
What should i do regarding taxes if I am working full time and have a self employed 'freelance' work?
I would talk to your HMRC tax office they do have guidance on this issue here
1This is hardly an answer. Sep 14, 2014 at 23:10
3Their website is excellent, easy to understand, and contains the definitive information. It's not going away (HMRC is Her Majesty's Revenue & Customs office, not some random site), and it will be updated when the rules changed. A better answer couldn't be given. Sep 15, 2014 at 16:20
@gnasher729 Ty quite often So seem to prefer a lot of wafflely fluff in answers when a simple one or two line one is the best answer– PeponeSep 16, 2014 at 22:30
2@littleadv is correct. My own government's tax site (our IRS) had a web update that broke hundreds of outbound links from my own blog. While the answer "search on the HMRC site" may ultimately solve the problem, SE's policy is that link-only answers are to be avoided. A couple sentences summarizing the solution would be great . May 19, 2016 at 16:37
First, request that you complete a tax return.
On this tax return, you will complete both the employed and self employed sections. This will give you a total income and tax liability.
You will already have paid some tax via PAYE, but you will have to pay additional tax for any other income. For future years there is the option, depending on amount, to collect extra tax through PAYE to cover the other earnings. If it is likely to be the same for the next few years, this may be a better option than paying a lump sum.
The tax return is now mostly online, and not too bad if your affairs are otherwise simple. The hardest part will be keeping a good record of your other earnings. Remember that you have to keep these records for seven years in case HMRC ever want to audit them, and it's a good idea to have a separate account for the income, or some other way of easily identifying it.