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Where Taxpayers and Advisers Meet

paye tax code whilst self employed

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

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.

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.

Return to “PAYE and Payroll Taxes, National Insurance, NICs”