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Where Taxpayers and Advisers Meet

Help! Changed from PAYE dec 2023 to SE

Joined:Mon Jun 10, 2024 1:39 am
Help! Changed from PAYE dec 2023 to SE

Postby Shellypeb » Mon Jun 10, 2024 1:45 am


Long story short brand new to being self employed and im fairly clueless currently - i was PAYE for over 10 years with a company until redundacy on 8th december 2023. Went self employed beginning of january and registered on gov gateway and have UTR etc

A few things im confused about:

- For my 23 assesment because i've paid tax via PAYE up until december am i only declaring from jan 1st to april 1st 2024?

- do i need to tell hmrc i was employed for the majority of 2023 and already payed tax?

- will i only pay tax for jan 24 - april 24 or will they base my bill on the entire year of earnings?

- my earnings in jan 24 - april 24 are well under the personal allowance... What happens in that scenario?

Any help and advice would be great thank you!

Joined:Mon Mar 11, 2019 4:22 pm

Re: Help! Changed from PAYE dec 2023 to SE

Postby Jholm » Tue Jun 11, 2024 1:31 pm

It's assessed as a full tax year when you prepare the return. If you exclude your employment income (as per the P45), you will be incorrectly reporting.

You need to declare all sources of income and declare the tax paid under the employment. All income (to include self-employed profits) will then be pooled together for tax purposes and one set of allowances given against all income. The tax is then calculated and the tax paid in year deducted, giving either an underpayment, overpayment or the correct amount paid.

There may be some quirks with regards to the redundancy element, subject to the figures paid upon termination. You might do better appointing a professional, as the cost of, say £250-350. This may even save you more than this amount in the tax liability, if they fully assess the allowable expenditure and any reliefs.

Happy for you to drop me a OM if you wanted.

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