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Posted Tue, 06 Aug 2024 16:21:07 GMT by oOCraigBOo
Hi, I am employed full time but have taken on a side gig and will manage my own billing and taxes. I am unclear on whether I should pay additional NI on this side hustle (+8k a year). I am already inthe higher tax rate. Do I need to set up as a sole trader or should I just submit my earnings? Thanks
Posted Mon, 12 Aug 2024 07:52:50 GMT by HMRC Admin 5 Response
Hi

Yes.  Your 'side hussle' does not appear to be through employment, which means that it is self employment.  
As your turnover is more than £1000, you are required to register for self assessment, as self employed.  
When you declare your profits and expenses, self assessment will factor in the Class 1 National Insurance deducted by your employer, when calculating the Class 4 National Insurance arising from your self employment.  
Any tax and national insurance that arise from your completed tax return, will be collected through self assessment.  Please see Register as a sole trader.

Thank you

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