I have a client, who just happens to be my dear hubby, he is employed full time but has recently set up as a self employed electrician. Due to the nature of some of his work he is also CIS registered. For the time being he is running both `jobs` alongside each other.
In his normal `day job` he is already taxed at the higher rate however, will all his earnings from being self employed need to taxed at the same higher rate ?
And, if he has done a job whereby it comes under the CIS will he be able to deduct tax at 20% or will that need to be taxed at the higher rate ?
Any words of wisdom and pointers on this would be gratefully received.
The profit (or loss) from your husbands self-employment will need to be included in his income tax computation for the year. If his total statutory income (employment, self-employment, dividends etc) is more than the higher rate band, then the excess over this band will be taxed at 40%, less any tax suffered at source.
The CIS tax will be taxed at 20% irrespective of whether the subcontractor is a higher rate tax payer.
