WTC and temping

wigglebeena

Is it worth applying for WTC if you also temp when you can? I am registered self-employed but making rubbish money, i would very probably be eligible at the mo. But the trouble is I also want to take any temp PAYE work I get offered - but my pal had no end of aggro with family credits, and I don't relish the idea of having to fill in pages of paperwork every time an agency calls up with two days' work.

Is it a good idea anyway?

Conor_3

Yes. It's what I've done. All you have to do is give them an estimate of the annual amount you reckon you'll earn from PAYE. Doesn't matter how right it is as long as it's not too far out as when you renew and confirm your income for the previous year, any over or underpayment will be compensated for in the following financial year as the current years payments are based on the previous years earnings.

If your SE ends up running at a loss over the year or below your personal tax free allowance, you'll get a refund on the tax you paid on PAYE when you return your self assessment form.

PAYE wages you'll be paid will be taxed on the full amount, not the gross less £120 a week tax free, so bear that in mind. If you've paid too much tax because you don't hit the personal allowance from SE, you'll get the refund as I've said above.

Happy_Girl_2

Conor wrote: »

Yes. It's what I've done. All you have to do is give them an estimate of the annual amount you reckon you'll earn from PAYE. Doesn't matter how right it is as long as it's not too far out as when you renew and confirm your income for the previous year, any over or underpayment will be compensated for in the following financial year as the current years payments are based on the previous years earnings.

If your SE ends up running at a loss over the year or below your personal tax free allowance, you'll get a refund on the tax you paid on PAYE when you return your self assessment form.

PAYE wages you'll be paid will be taxed on the full amount, not the gross less £120 a week tax free, so bear that in mind. If you've paid too much tax because you don't hit the personal allowance from SE, you'll get the refund as I've said above.

Just wanted to say I've done PAYE work alongside my Se work, and definitely do as Conor suggest and opt for BR tax on your PAYE work. You will need to complete a P46 for your PAYE work and tick box c to say you have another job

That way, when you come to do your SE, when the tax is coming out of your pocket all at once you get the benefit of your free pay allowance. It's far easier to pay the 20% on PAYE work at source