December 7th, 2021.



Are you currently employed and paying tax and national insurance but also carrying out work outside of your employment either as a sole trader or within a partnership? If so, you would need to declare this second income via a self-assessment tax return and would be classed as self-employed.

Paying tax on a side hustle
Depending on your level of self-employed earnings, you may also need to pay Class 2 and 4 national insurance contributions through your self-assessment tax return, but this is also after taking into consideration the contributions already paid on your salary.

Class 2 national insurance is currently (2021/22) £3.05 per week (£158.60 for a total tax year) for earnings above the small earnings threshold of £6,515.

Class 4 national insurance is payable at 9 per cent above the threshold of £9,568 but an additional 2 per cent will be payable on profits if they exceed £50,270.

Class 4 national insurance will be increasing by 1.25 per cent from April 2022....


For the full story at smallbusiness.co.uk CLICK HERE.