Paye after self employment query

seh567

Hi, for the current tax year I was self employed in the building trade under CIS until October this year, afterwhich work dried up so I ceased self employment. Since then I had been claiming jobseeker but have now found fixed term employment on a part time basis with Royal mail so will be earning money under PAYE tax & NI contributions but will lose jobseekers as its over 30 hours per week. I've roughly worked out that at the end of this current tax year I will have overpaid my tax collectively by approx £1500 as my CIS tax deductions @ 20% has not included any tax allowances

My question is - Do I have to wait until they send me a self employment tax form in May before I can claim a refund on my self employment and is there anyway I can get a proper tax code so I can cease paying emergency tax via Royal Mail employment? I am not earning very much and know I have overpaid tax so I would like to feel the benefits now and not have to wait until May.

Any advice would be appreciated.

ceeforcat

Regrettably you will have to wait until April when the SA form is issued. On this you will have to declare all of your income for 2008/09 tax year - you are not in a position to know this until the end of the tax year at the earliest.

System

Contractors do not operate under PAYE so do not have to deal with tax codes etc and they deduct tax from their subbies at a straight 20%.
It is not possible for the pay and tax details from self-employment to be passed to a PAYE operating employer in order to process possible refunds of tax overpaid through CIS so you have to wait until the end of the tax year, submit your return as usual and await the refund then.

Spicey

When you ceased self employment did you do a ceasation set of accounts and inform the tax man?

taxman3000

1, you can not claim your cis repayment until you complete your self assesment return.

2.if you have a p45 from the job centre hand this in to your new employer. once you have a new tax code through the post call your own tax office and ask for your allowances to be used at your employment, it is important that you tell them you were self assesed then had a claim for jsa in order for them to restor the code., that way you may get the beneifit of your allowances straight away, and as long as you stay in the 20% when you come to complete your return, you should be all square.

seh567

yes I did inform the tax office that I have ceased self employment. They have not asked for ceasation accounts but my accounts are up to date.