Hope you can help. I work full time at an agency earning £21,000 (PAYE) and want to do some freelance website work for 1 external client on a long time basis. Having never done freelance work before I am confused over how tax/self employment works when I will also be working my full time job.
For the freelance job I will be paid £250-450 a month (to be agreed) and it will be ongoing on a monthly basis with the same set amount. They have asked I invoice them monthly.
What I need to know is what I need to do re tax/NI etc? Obviously I need to contact the HRMC but does this make me self employed whilst also being employed?
I am worried (though unavoidable) that to be paid just £250 a month I will end up seeing very little of it due to tax payments etc, as obviously I pay around that or more a month in tax/NI through my full time job. Or is tax through self employment dealt with on a separate basis regardless of how much I earn PAYE?
I am of course going to phone the inland revenue but wanted advice from people in the same situation.
