Self employed and also employed

irn_bru

Hi all. My fiancee went self employed last year and declared this to the inland revenue. It's part time cleaning work and we expect she'll make about £3000 a year from it.

She recently took a part time job in a shop to make a bit of extra money and she'll make about £4000 a year from this.

As she is registered self employed and hasn't yet submitted a tax return, I believe she is being taxed at 40% on the shop job. Is this likely to be the case? She's had one salary payment but they messed things up a bit so she hasn't had a payslip yet.

If so, what's the best thing to do to sort this out? Would completing a tax return now sort it?

Thanks in advance

CLAPTON

presumably she filled in a P46 when she started work?
which box did she tick A,B,C ?
what is her tax code?

irn_bru

Don't know if she did or not. She's not very money savvy so unless it was put in front of her then no she hasn't.

What's the best course of action if she hasn't filled one in? Get one and fill it in I guess?

Thanks

Edit: Just checked and I guess they would have gotten her to fill one in as I'm sure she didn't take her p45 from her last job. I've no idea what box she ticked. Let's say she ticked box C as she should have done. What should happen?

McKneff

What makes you think she is being taxed at 40%

We really need a lot more detail about the shop job if you want us to help.

irn_bru

I assumed she would be as the IR have no idea what she is making from her self employment as she hsan't filed a return yet. Plus her first salary payment was about 40% less than I expected. I'm sure she's been taxed something when in reality she probably she be paying very little, if anything.

What other info do you need? Just a general idea of what should happen in this situation would be a great help so I can check when the relevant documents become available.

Thanks

lalli_pickle

The shop should be taxing her based on the tax code they received from HMRC. If they have not yet received a tax code they will tax her at Basic rate 20% which should show on payslip as tax code BR.
Usually HMRC will allocate the personal allowance (the tax free bit) to employment income first so in theory she won't pay tax on her employment income if it is less than £469 per month (I think) or the weekly equivalent but if the employers are using the BR tax code for the moment she will probably have tax deducted and then it will be repaid when the correct tax code comes through.

CLAPTON

what is her tax code on her payslip?

irn_bru

She hasn't had a payslip yet. They somehow missed her first payment and she eventually got it a week late. This may account for it.

Thanks for your help though guys. I now know where to look when the info finally comes through.

CLAPTON

it's not reaaly possible to do much until get get the payslip, but if she ticked the 'C' box then she will be taxed at BR (i.e 20%). if she ticked the a or b box then she should be give 6475 allowance although probably on a week 1 basis.