Part-time instructing
Thread Starter
Join Date: Apr 2000
Location: Swindon
Posts: 3
Likes: 0
Received 0 Likes
on
0 Posts
Part-time instructing
I am about to do an FIC and the master plan is to work part time at weekends instructing while keeping the mon-fri boring day job to pay the bills.
I was just wondering how the money side of things works with having a second job (yes I know I am not going to earn millions…). As a part time instructor do you set yourself up as a Ltd company or a sole trader? Do you also have to pay NI on the second income?
Any advice would be much appreciated
Cheers
bb
I was just wondering how the money side of things works with having a second job (yes I know I am not going to earn millions…). As a part time instructor do you set yourself up as a Ltd company or a sole trader? Do you also have to pay NI on the second income?
Any advice would be much appreciated
Cheers
bb
Join Date: Sep 2002
Location: Yorkshire-God's own country
Posts: 29
Likes: 0
Received 0 Likes
on
0 Posts
Big-Bird,
Depends if the flying school you end up instructing for take you on as an "employee" so you have all the NI/tax blah stuff taken care of like you do in the bill-paying job, or if you are "freelance" for want of a better word.
If its the first then you don't have to bother yourself.
If the second then give the tax man a call and explain your plan - if they don't know its a poor state of affairs!
You end up registering as self employed and have to fill in a tax return like everybody else who's slef employed. If you projected FI earnings aren't going to go over a limit (can't remember exact figure but around £4500) you don't pay class 2 NI contributions following the completion of a declaration.
I doubt you're going to worry the revenue with the odd weekend on FI wages, you're tax bill will be microscopic.
A word to the wise however - don't believe anybody who says you can claim the cost of getting to where you are now as a "business expense" to set youself up, it does not wash and the nice people at the tax office will be waiting for you!
MM
Depends if the flying school you end up instructing for take you on as an "employee" so you have all the NI/tax blah stuff taken care of like you do in the bill-paying job, or if you are "freelance" for want of a better word.
If its the first then you don't have to bother yourself.
If the second then give the tax man a call and explain your plan - if they don't know its a poor state of affairs!
You end up registering as self employed and have to fill in a tax return like everybody else who's slef employed. If you projected FI earnings aren't going to go over a limit (can't remember exact figure but around £4500) you don't pay class 2 NI contributions following the completion of a declaration.
I doubt you're going to worry the revenue with the odd weekend on FI wages, you're tax bill will be microscopic.
A word to the wise however - don't believe anybody who says you can claim the cost of getting to where you are now as a "business expense" to set youself up, it does not wash and the nice people at the tax office will be waiting for you!
MM
Join Date: May 2004
Location: UK
Posts: 29
Likes: 0
Received 0 Likes
on
0 Posts
I currently do something similar flying one day a week on a Sunday. My contract with the flying School is purely casual and is stated to this effect within the wording of the contract. I earn approximately £2000 per year from flying instruction.
After some initial research I felt that registering as self-employed was unnecessarily complicated and have elected to declare my flying pay to the Inland Revenue as casual earnings and therefore untaxed income. I do not pay National Insurance.
A simple letter to the IR stating that I had received untaxed income from my casual employment as a Flying Instructor resulted in a swift reply asking me to forward my P60 from my main job. I then received a revised tax assessment for that tax year and was informed that the unpaid tax would be collected by reducing my PAYE code and that this would take effect from the beginning of the following tax year.
The IR now send me a form at the end of each tax year asking me how much I have earned in untaxed income. I also have the opportunity to give details of expenses incurred on the same form.
By including expenses such as medical renewal fees, mileage to/from the medical centre (claimed at the IR rate of 40p a mile), FI revalidation fees, aircraft hire for the test and also a mileage claim for the journey to and from the test airfield I can further reduce the amount of tax paid to a small amount that is hardly noticed as it is spread out over twelve months.
After some initial research I felt that registering as self-employed was unnecessarily complicated and have elected to declare my flying pay to the Inland Revenue as casual earnings and therefore untaxed income. I do not pay National Insurance.
A simple letter to the IR stating that I had received untaxed income from my casual employment as a Flying Instructor resulted in a swift reply asking me to forward my P60 from my main job. I then received a revised tax assessment for that tax year and was informed that the unpaid tax would be collected by reducing my PAYE code and that this would take effect from the beginning of the following tax year.
The IR now send me a form at the end of each tax year asking me how much I have earned in untaxed income. I also have the opportunity to give details of expenses incurred on the same form.
By including expenses such as medical renewal fees, mileage to/from the medical centre (claimed at the IR rate of 40p a mile), FI revalidation fees, aircraft hire for the test and also a mileage claim for the journey to and from the test airfield I can further reduce the amount of tax paid to a small amount that is hardly noticed as it is spread out over twelve months.
