From: "Dr.Stephen GoldenGun" 
Newsgroups: uk.finance
Subject: Re: Advice on additional income
Date: Wed, 23 Jul 2003 04:08:10 +0100


Pete Smith  wrote in message
news:MPG.198795e396aee57998a23a@news.freeserve.com...
> Hi all.
>
> I've got a question about additional income. I've done a google, and got a
> hit on a question similar to this, but from a few years ago, and things
> may have changed since then.
>
> Basically, I'm employed full time. I'm not self employed, and don't have a
> limited company etc etc.
>
> I've got an opportunity to do a one-off freelance project, which pays a
> lump sum when I'm finished.
>
> I know I should declare it.
>
> 1) When I checked google, the consensus is that I'd not have to pay N.I.
> on it, because I'm already employed, and it could just be tacked onto the
> amount I earn normally, so I'd only pay 24% tax on it (the amount added to
> my income wouldn't push me past the 40% boundary :-( ).
>
> 2) What's the best way of doing this, without having to fill in one of
> those self assessment tax returns? Can I just write to my tax office and
> say "This is my name, this is my N.I. number. I'd like to declare that I
> earned an additional £n, in addition to my normal paid employment.
>
> 3) Could I ask the tax office to adjust my tax code for next year, rather
> than requesting a very large chunk of it in cash form.
>
> 4) Is there any real, sensible way I can limit the tax payable on it? I've
> not got any relatives I could have paid and then steal the money from ;-)
>
> Thanks in advance (for the free financial advice :-)
>
> Pete.

Hi Peter,

It is such a complex question that you should really consult a proper
accountant! Better still why not post on uk accountantcy they will surely be
able to help if you get no joy on this forum.
>
> --
> NOTE! Email address is spamtrapped. Any email will be bounced to you
> Remove the news and underscore from my address to reply by mail