switching from self employed to employed help!!!

sunnygal

Hello,
Help, to those in the know I am sure this is basic, but everyone I have asked about this just blinds me with financial gobbledygook and I get lost.
I am currently self employed, not earning much and have recently started some employed work, which pays more. I am currently paying BR rate tax on my paid income.
So I am thinking of switching from self employed to employed from 1st April.

What I want to know is how do I switch and...if my combined earnings from self employed and employed are less than my allowance which I think is 6575 for the coming tax year, do I have to pay any tax at all? Or do I still have to pay BR on my self employed earnings.

Second question is....If I am not earning enough in my employed job to pay NI. Does that mean I might be losing out with regard to my 'old age' pension. I am currently paying NI monthly with my self employed status, but if this finishes I want to know where I stand.
Thankyou.

fengirl_2

You can ask your tax office to allocate your personal allowance to your employed job from 6 April. This will mean that if your profits bring you above the tax free allowance you will pay basic rate tax on the profits - but you will have the use of all your earnings until and if this has to be paid.
Am not an expert on NI, but believe that if you are employed, albeit below the NIC limit, you are credited with NI conts.
If your self employmetn actually ceases, you need to show this on your self assessment for the relevent year.

Elaine_Wilson

For a tax year to count towards your pension your earnings have to be above the Lower Earnings Limit. This is currently £90 a week rising to £95 next month.

On earnings between £90 and £105 a week you actually pay national insurance but at a zero rate so if you are in this bracket the year will count towards your pension.