Around the end of the tax year, your employer will give you a P60 that sumaraise the tax that you will have paid through the PAYE system. There is a section on the tax return to declare this. In the self-emplyed section of the tax return, you give details as before of self-employed income, allowable expenses and so on. The calculation will take into consideration the tax that will have already been deducted for your wages and there might be some more tax to pay - this could be 20% of your self-employed profit.

It's up to HMR&C whether you need to complete a tax return but, as long as you have some self-employed income, I expect that you will still be asked to complete one.

Ok, I'm starting to get this. But, assuming I keep a small percentage of the round for extra cash at the weekends, how will I declare those earnings? Surely, as I am now on the payroll for a company, I no longer have to complete tax returns? Also, will I still be able to claim expenses?

You should be completing a tax return every year. Both income and capital gains should be declared there. The rate at which any capital gains tax is paid does depend on income but yes, it is a separate tax with a separate allowance. If you sell the business in several parts (the round, the web site, etc.) over several years and the gains are below £10k each year, then you would still be expected to declare the gains on the tax return but there would be no capital gains tax to pay.

Ok, so are my capital gains a separate affair from my income generated through the new job? And how would I go about declaring my income from the smaller window-cleaning round I plan on doing?

I would expect that the proceeds from selling parts of the business will be treated as a capital gain. You can have around £10k of capital gains each year without having any capital gains tax to pay.

If your total income in any tax year goes above about £35k, you will pay higher rate income tax on the amount over £35k.

Hi everyone, just looking for a bit of advice on tax.

I've recently started a new job and my previous job was as a self-employed window cleaner. I still currently have my round but I don't know what to do with it.

The round makes around £400 a month and I thought about keeping around half of that and doing them on the weekends for a bit of extra cash, then selling the rest of my clients. Presumably then I will still be able to claim relevant expenses but how will that work in terms of tax? will I be on a higher tax-band? ie will it be worth it?

I also have an affiliate website I plan to monetize soon and if it works out will be an extra income stream which I will have to declare.

Regards,

Jon