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Where Taxpayers and Advisers Meet

paye tax code whilst self employed

sandra_g
Posts:1
Joined:Thu Jun 23, 2022 11:36 am
paye tax code whilst self employed

Postby sandra_g » Thu Jun 23, 2022 11:48 am

hi there, I've been self employed in a partnership for a few years and started a part time job this month.
My employer has given me the 1257L tax code and I'm not paying any tax or NI on my first weekly pay slip.

Is this the correct tax code for me
When I file my online self assessment next year is the income from the new job calculated at the end of the return so I can pay any tax NI due there

Thanks in advance

Jholm
Posts:354
Joined:Mon Mar 11, 2019 4:22 pm

Re: paye tax code whilst self employed

Postby Jholm » Fri Jun 24, 2022 3:52 pm

That tax code is standard, meaning you have a tax free allowance of £12,570. if your weekly earnings are less than £12,570/52, then no tax will be payable.

Assuming self-employed/partnership earnings have been received after 6/4/22, you'll need to file a return to disclose both that and the employment. Tax will be calculated on the overall combined income and any over/underpayments accounted for via the return.

bd6759
Posts:4256
Joined:Sat Feb 01, 2014 3:26 pm

Re: paye tax code whilst self employed

Postby bd6759 » Fri Jun 24, 2022 10:43 pm

If you are not paying NI, it means your pay was below the NI threshold for that period. The NI threshold is lower than the tax threshold, so no tax would be due either.

As stated above, it will sort itself out when you submit your tax return. If you don’t want a bill ask HMRC to change your code to BR so that you pay tax on your employment income as it is earned.

RoryDickerson
Posts:6
Joined:Thu Mar 09, 2023 6:10 pm

Re: paye tax code whilst self employed

Postby RoryDickerson » Sat Mar 11, 2023 9:22 pm

The 1257L tax code is a common tax code for people who have one job or pension. If you have more than one source of income, such as self-employment income from your partnership and your part-time job, your tax code may need to be adjusted to reflect this.

In general, the tax code is based on your estimated total income for the year, including income from all sources. If you have multiple sources of income, it is important to check with HMRC to ensure that your tax code is correct.

Regarding your self-assessment tax return, you will need to declare all of your income from all sources for the tax year. This includes your self-employment income from your partnership and your part-time job. You will be taxed on your total income for the year and any tax due will need to be paid by the relevant deadlines.


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