Self-employed in 2 different sectors

[Ports]

Hi,
I've recently become self-employed and do some work in 2 completely different areas (IT services and construction industry). For the construction work I have registered as a subcontractor under the Construction Industry Scheme. The construction contractor I've been working with has been making tax deductions before making a payment to me, as per the gov guidance.

Subcontractors have to make a return of their profits each year, and their tax liability is based on that return. A subcontractor may already have paid tax by payments on account or had deductions made, as shown on the payment and deduction statements given to them by their contractors.

Source:https://www.gov.uk/government/public...actors-cis-340

I assume the deductions do not include the NI contributions and they'll have to be paid through annual self-assessment. Is that correct?


Now, the other work I do (IT) is obviously not under the Construction Industry Scheme. Here, I'd need to pay both tax and NINO contributions.
How does it work when I file a self-assessment? Would I be able to differentiate the two types of work?

Thank you in advance.

[Lance]

Almost all of us are LTD company directors (except the many employees).
Very few are actually self-employed.
So I'm not sure how much help we'll be able to give.

But I'd make sure I start my self-assessment ASAP (April 6th) so I have plenty of time to see if there are the correct places to put my figures. It also gives plenty of time to ring HMRC direct ad ask them.
You could also get an accountant to do your SA for you.

[Ports]

Almost all of us are LTD company directors (except the many employees).
Very few are actually self-employed.
So I'm not sure how much help we'll be able to give.

But I'd make sure I start my self-assessment ASAP (April 6th) so I have plenty of time to see if there are the correct places to put my figures. It also gives plenty of time to ring HMRC direct ad ask them.
You could also get an accountant to do your SA for you.

Ok. Thanks. I'll start the SA next month to see what options there are.

[Craig@Clarity]

Hi,
I've recently become self-employed and do some work in 2 completely different areas (IT services and construction industry).

Are you actually self-employed for your IT work i.e. a sole trader, or do you have a limited company for this type of work?

I assume the deductions do not include the NI contributions and they'll have to be paid through annual self-assessment. Is that correct?

That's correct. You'll declare the class 2 NIC on your self assessment tax return as an annual figure and pay it through that tax bill if you've earned enough. You'll need to declare your gross payment on your tax return and then in another box declare the tax deducted from your payments at source by the hiring contractor.

Now, the other work I do (IT) is obviously not under the Construction Industry Scheme. Here, I'd need to pay both tax and NINO contributions.
How does it work when I file a self-assessment? Would I be able to differentiate the two types of work?

Thank you in advance.

If you're genuinely self employed (sole trader) for both types of business then you simply declare both types of work on your tax return and pay the class 2 NIC as mentioned above via the tax return.