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I currently live in the UK. I work full time (37.5 hours a week) at an agency. I get paid a fixed salary for this.

I've been approached by someone in New Zealand to hire me by working remotely, I will be working around 15 hours a week for them and get paid by the hour.

My current employment has an accountant who does all my National Insurance and Income tax. I'm not sure what I need to do when I start having a second income, do I need to tell my accountant about this? Will I have to work out my own taxes if my second job does not have an accountant?

I'm a little stuck on knowing what to do next - what will be the best approach for me to do?

mhoran_psprep
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MacMac
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2 Answers2

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First of all, make sure whether your current employer may fire you if you work for another employer. Not sure about the UK, but in Germany, you always have to file it with your employer, who may object to the side job of a full-time employee for various reasons. (E.g. you have to be fit when you work for your "main" employer, so you may not work for another employer in your "recreational time" without his approval.) Also make sure that you don't break any employee protection laws (maximum hours per day/week, minimum pause, working on Sunday/Holidays).

Second, check whether the "side job" is you being "self-employed" or whether you are legally a normal employee of the NZ company. If the first, make sure you don't break self-employment laws in the UK (which you may, by having only one client); if the second, make sure that you don't break employment/tax laws in NZ (which you may, not having a NZ work visa and/or paying taxes in the UK only).

If you got there successfully, you will then be on your own with your taxes. Your company accountant will do the (pre)tax as before, but you have to make sure that you declare everything you earn and pay everything you owe. Visit a tax adviser specialized in taxation of international work contracts; I would also recommend to contact a NZ-based tax adviser as well.

Alexander
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You will need to create some form of legal entity through which you will account this job. If this is as simple as you describe - just working for someone else in different country then sole trader seems like the appropriate choice for you. It will also make running the accounts relatively straightforward. But you will have to do the accounts and pay taxes on the income yourself.

I would also re-read your existing contract whether you are allowed to take side jobs (it may be either prohibiting you from moonlighting altogether or there may be no-compete clause). If there is nothing there that prohibits you from working elsewhere then your time is for you to use in any way you please. With that in mind, I see no reason to hide it from your current boss, he may even offer to buy those hours from you at some reasonable rate.

Aida Paul
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