Self assessment self-employed/employed in same tax year

mrsiwannabefree

Hi
My friend has to do his self assessment but he was only self employed for 4 months of that tax year, was then unemployed for 2 months and then finally got a job as an employee on PAYE.

I think he has to add his self employed earnings to the figure on his P60 for the year as his total earnings for the tax year? Is that correct?

Thanks for your help

mrsiwannabefree

A colleague has told me that I should only do the self assessment for the period he was self-employed ie April to July as the company he works for now would have sent in his P60 for that tax year.

Any views?

Mikeyorks

The SA needs to cover both aspects. You complete the self employed pages for the 4 months (showing self employment has now ceased(?)). And the employed page - using the P60 figures.

But the total income for the year (and the tax deducted per the P60) needs to be in the SA Return.

mrsiwannabefree

Thanks for your reply

He's doing his return online - can you seperate them online do you know?

Mikeyorks

Yes - you can select both employed and self employed aspects. It will then calculate the tax due for the year based on the total income ...... but deduct tax already suffered on PAYE.

But - if full personal allowances have been allocated against PAYE (Code 647 or thereabouts) then all the self employed income will be taxed at least 20%, as there are no allowances left to offset.

The only other slight oddity is if Student Loan is involved? It can happen that the threshold (£15k pa) might not be exceeded separately on PAYE / self employed ...... but will when combined.