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Where Taxpayers and Advisers Meet

Self employed for 8 months, Personal allowance during 20/22

simonk12
Posts:2
Joined:Wed Aug 25, 2021 9:52 am
Self employed for 8 months, Personal allowance during 20/22

Postby simonk12 » Wed Aug 25, 2021 9:55 am

Hello,

I will have been self employed for 8 months in this financial year, does that mean I only get 8/12 of my 12560£ Personal allowance or can I deduct the full 12560 from my income.

Many thanks for your responses

robbob
Posts:3149
Joined:Wed Aug 06, 2008 4:01 pm

Re: Self employed for 8 months, Personal allowance during 20/22

Postby robbob » Wed Aug 25, 2021 10:49 am

You only ever have one full personal allowance for the year - at tax year end add together all taxable income sources and the amount the total exceeds the personal alowance will be the amount you pay tax on.
Tax deducted in year from employment is deducted from the total tax due when worked out using above method.

If you have no other incomethis tax year you have full allowance practicably spekaing - if you were previously employed earlier in the tax year then sum of the parts calc will be needed.

simonk12
Posts:2
Joined:Wed Aug 25, 2021 9:52 am

Re: Self employed for 8 months, Personal allowance during 20/22

Postby simonk12 » Wed Aug 25, 2021 3:41 pm

Many thanks for your response.

Just to clarify.
I was a student before I opened my business so up until now I have t had any income this tax year. So for example if in the next 8 months (until April) I make 15,000. I only pay tax on 2440. correct ?

D&C
Posts:50
Joined:Mon Nov 25, 2019 11:35 pm

Re: Self employed for 8 months, Personal allowance during 20/22

Postby D&C » Sat Aug 28, 2021 8:23 pm

No.

If you mean your profit is £15,000 and you haven't applied for Marriage Allowance then you would be taxed on £2,430. The Personal Allowance this tax year is £12,570. Or £11,319 if you have applied for Marriage Allowance.

You would also have Class 2 and 4 National Insurance to pay as part of your Self Assesment bill.


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