Hi all…
I drive for a couple of agencies (PAYE) whilst on my stand down periods from main employment on boat. Unfortunately HMRC have estimated my taxable income will go above the higher rate threshold (which it probably will). So I’m getting stung on a 40% tax code … I’m gutted, because I love driving trucks, but not when I pick up £229 for 52 hours work. Is there any other options for me, which could see me carry on driving. Anyone have any good advice? Can I get around this at all? Would setting up as LTD be more favourable?
Only been driving Class 2 since February and really don’t want to give it up if I’m honest. Especially after paying out over a grand to obtain licence (and I really enjoy driving).
It cheeses me off that people get penalised so much for trying to earn more money to better themselves.
Before I let rip, whilst you’re stood down from your employment on a ship, are you paid? Salary or retainer? Is your employment on the ship (s) permanent, or seasonal?
If your driving earnings will take your total earnings over the threshold, why should you not pay the higher tax rate?
the nodding donkey:
Before I let rip, whilst you’re stood down from your employment on a ship, are you paid? Salary or retainer? Is your employment on the ship (s) permanent, or seasonal?
If your driving earnings will take your total earnings over the threshold, why should you not pay the higher tax rate?
I’m on salary and it’s permanent.
Just to add, I spend more time at home on rest whilst on my 2 weeks duty on boat than I spend on boat… Yes it’s a cushy number and I’m lucky. However, I just wanted to see if there’s a better option for my driving work. That’s all.
You have to ask yourself if your not being greedy about not wanting to pay the higher tax rate and the extra NI that comes with having a second job.
Obvious your main job is a reasonably good paid job other wise you would not be paying the higher tax rate.
Can`t have it both ways
No sympathy from my side.
You could stick some of the extra earnings into a pension, it would be tax free (and un-spendable). Until you retire that is.
You could go Ltd and pay your wife instead, if she is in a lower tax band.
Going Ltd will allow you to pay yourself £5000pa dividend tax free (although already subjected to corporation tax at 20%), your wife if you have one could also get £5000 of dividend tax free.
As Ltd you can normally get a better rate from the Agency as well. You will also be able to write off many expenses, and claim for home office etc.
Big burner:
You could stick some of the extra earnings into a pension, it would be tax free (and un-spendable). Until you retire that is.
You could go Ltd and pay your wife instead, if she is in a lower tax band.
Going Ltd will allow you to pay yourself £5000pa dividend tax free (although already subjected to corporation tax at 20%), your wife if you have one could also get £5000 of dividend tax free.
As Ltd you can normally get a better rate from the Agency as well. You will also be able to write off many expenses, and claim for home office etc.
Thank you Big burner. That’s the sort of answer I was hoping that might materialise. I’m a bit green when it comes to taxes etc. So hopefully look into that. Cheers
God forbid anyone wanting to earn more money for a better life all while we have mps on 68k a year with 2-3 other jobs along with mps expenses that help pay for a 2nd house and other investments.
JaxDemon:
God forbid anyone wanting to earn more money for a better life all while we have mps on 68k a year with 2-3 other jobs along with mps expenses that help pay for a 2nd house and other investments. Sent from my SM-G935F using Tapatalk
+1 on the pension. Contribute everything you earn that takes you above the upper threshold.
Because you’re contributing yourself you get an automatic 20% added by the govt as a deposit into your pension pot and as it’ll be income from the higher tax bracket you can apply for a further 20% but you’ll need to apply yourself to HMRC to get it.
Explanation of how it all works and what you need to do:
Conor:
+1 on the pension. Contribute everything you earn that takes you above the upper threshold.
Because you’re contributing yourself you get an automatic 20% added by the govt as a deposit into your pension pot and as it’ll be income from the higher tax bracket you can apply for a further 20% but you’ll need to apply yourself to HMRC to get it.
Explanation of how it all works and what you need to do:
JaxDemon:
God forbid anyone wanting to earn more money for a better life all while we have mps on 68k a year with 2-3 other jobs along with mps expenses that help pay for a 2nd house and other investments.
Sent from my SM-G935F using Tapatalk
And that’s exactly all I want to do. I ain’t greedy,I just want that bit more for my family.
JaxDemon:
God forbid anyone wanting to earn more money for a better life all while we have mps on 68k a year with 2-3 other jobs along with mps expenses that help pay for a 2nd house and other investments.
Sent from my SM-G935F using Tapatalk
7
^
This
nothing wrong with getting the most from your earnings and if theres a grey area loophole then take it.
Over 60K euros and we get taxed at 45% but loopholes can get this down to 24% if figures are moved around the right boxes…
