Hello there, I've been working for a nursing agency for the last few years and my income tax and n.i is taken care of via p.a.y.e, now things have been a bit quiet of late and i've been doing some research into the taxi business for the last few weeks in view of doing both(at least for a while). My question is, how do i go about paying my self employed n.i stamp if im already paying for it with my nursing job? What is the procedure?

Kind Regards,
Andy

Thank you for your reply, i'm not very savvy about such things so i'll give the .gov helpline a call next week.

Your thinking of coming into this cess pit your off yer nut ffs read up on it

Do you have to declare your extra income?

Whichever type of income it is, if there is tax to pay as a result of it, there is a legal requirement to notify HMRC (”the tax man”) about it. This is highly likely if your combined income from employment and your other income is over the tax-free Personal Allowance of £10,000 and there are no other complicating factors. You cannot wait for HMRC to take the initiative and get in touch with you first.

It makes no difference if you are already paying tax on your employment income through PAYE. Tax is always calculated on total income, and there are no allowances or registration exemptions specific to each type of income. For example, if your employment earnings are over £10,000, and your business/casual income is only £500, in most cases there will be tax to pay on that income and so you must declare it.

How to declare your casual income (if it is not a business)

Self assessment

This is a relatively simple matter of registering for Self Assessment for the first tax year in which you had the income. You can do this by completing and submitting the paper form SA1, or by using this page on the HMRC website. The time limit for registering is 6 months after the end of the tax year in which you first had the income.

If you are already registered for Self Assessment and completing tax returns for some other reason, there is no need to register again.

Shortly after the next 5 April, you will be sent a notice to complete a tax return for the tax year just ended. To declare the casual income, include it in the “Other Income” section. If you are submitting the tax return on paper, assuming the box numbers stay the same, it goes in boxes 16 and 17 on page TR3. You will also need to complete the Employment section with details of the income from your job, as this is important in getting the tax right for the year.

The casual income is then calculated and taxed in the same way as business income, as described below. It is not subject to national insurance.

Im fairly certain that Class 1 is for PAYE earnings and Class 2 (and 4) is for self-employment, paying Class1 as a PAYE employee doesnt absolve the SE from Class 2/4, youd have to register as SE anyway regardless...

Your tax-free Personal Allowance usually gets allocated to your employment, so the tax on your self-employment will be at your own highest tax rate. If your total income is below £41,865, the tax on your self-employed income will be 20%, but any income over £41,865 will be taxed at the higher rate of 40% (income above £150,000 may be taxed at 45%).

Additionally, you pay Class 4 National Insurance on your self-employed earnings at a rate of 9% on any income between £7,956 and £41,865 in a year, and at 2% on any income over £41,865. If your combined income goes over £40,000 in the tax year, the amount of Class 4 NI payable starts to be restricted (more details).

I been doing my research for a few weeks now, your posts are very enlightening