Doing Self-Assessment when I am in employment AND self-employed??

luckymagpies

I am employed by a company and working 29 hours per week, this is my main income and I pay tax PAYE and national insurance in the usual employed way. I also do a little bit of freelance web design on the side. I have registered for self-assessment online with HMRC and have been saving 20% of my freelance earnings to pay my tax at the end of this tax year.

My problem is, that I was on an emergency tax code from my main employment for a while so want to make a claim for a tax rebate for that. I called the tax office a couple of weeks ago and they said the self-employment and my job would be dealt with completely separate. Although, I have just logged into to do my self-assessment for my freelancing and the first question asks if I am in employment and to give details. Technically, I AM in employment, but I thought the self-assessment was solely for my self-employed (freelance) earnings.

Please can someone tell me if I need to declare my employment on my self-employed self-assessment? I thought they were meant to be completely separate as I pay all my tax with PAYE for my job, but am now very confused and would really appreciate any help!

- Sophie

Elaine_Wilson

As far as I am aware self assessment returns should include all sources of income.

The only exception is where a sort of summary form is used to enquire about untaxed income. I have not heard of this being used for self employment, though.

You should declare your earnings on the self assessment. Your overall tax liability can be calculated and the repayment on your employment set off against tax due on the freelance work.

toby_puppy

Hi, yes, you just fill in your tax return and use a self employed section and an employed section on the same return.

Enter details from your P60 for the employment, thus you will be showing any tax you have already had deducted.

When you see your tax calc, it will show profit from self employment and gross earnings from employment - then it will deduct your personal allowance for 2010-11.

Then it will show how much tax you would owe on that income. At the bottom of the calculation, it will show tax you have already paid on employment and deduct that off any liability. Hope this helps.

no-oneknowsme

Hi . I had to complete my Husbands tax return last year and he had paye employment PLUS self employment.

When you open HMRC's site to begin your tax return the first few question you will be asked will be about your own unique situation. It is simply a case of ticking which boxes apply to you and then your return is built around that . So for example , it will ask you if you are an employee to which you will tick YES . It will then ask are you self employed , again you will tick YES . The it will ask if you have any income from letting out property etc.....just go through the list and tick yes or no to the questions.

Your return will then be moulded by your responses.

The benefit of filing online is that all the calculations are done for you and so if you ARE due a tax refund from your PAYE EMPLOYMENT this will be worked out on your tax return and you will be able to see immediately the amount you are owed.

To complete the employment section of your return you will need to have you P60 at hand as you will be asked how much you earned in this employment and also how much tax you paid. All of this as I say is on your P60.

I hope some of this is of help to you and just shout back if you need any more help.

luckymagpies

Thank-you all for your kind and fast responses! I have my P60 ready, so will go and file for both my employment and self-employment online now

I'm really grateful for the help and will definitely be using this great forum again!

no-oneknowsme

luckymagpies wrote: »

I'm really grateful for the help and will definitely be using this great forum again!

I learned loads this time last year about tax returns etc . Just like you I was in a pickle about completing that first ever tax return but with the help and advice from everyone on here I managed to complete it easily enough.


It IS a great site :T