Self employed & PAYE - how do the two run in tandem?

posttokev

I have been registered as self-employed as of 6th April 2011, working for a number of companies as a freelance.

As of October 2011, I have taken on an additional client but they classify me as a casual and as PAYE. As such, I am seeking some guidance as regards my tax return.

My new PAYE work continues to run alongside my self employed work for the other companies and is executed in the same way. Can anyone tell me if I am permitted to file deductions for expenses (for example, petrol) for my PAYE work as I can for my self employed work.

Also, I am not expecting my earnings for the tax year 2011-12 to exceed the Basic Personal Allowance. If this is the case, please could you tell me if the deductions taken from my PAYE work would be refunded in a subsequent tax year.

Thank you very much for your help,

Kevin.

John_Pierpoint

Hi Kevin,

I'll let the experts answer this BUT your question is about an annual tax called income tax.
You also have to remember the weekly tax you are already paying on your self employment PROFITS (with more to come when you have calculated your profit figure; you just might need to pay on your WAGES as a servant (aka employee). - I'm talking about that tax called "National Insurance".

Time for a little more research, and the cold wet towel for fevered brain?

To get an accurate reply we need some sort of idea of your hourly rate / annual projected profits.

Mikeyorks

posttokev wrote: »

If this is the case, please could you tell me if the deductions taken from my PAYE work would be refunded in a subsequent tax year.
.

The norm would be that any PAYE overpayment would be refunded when you file your SA Return.

But you would presumably have filed a P46 when you commenced the employed job? In which case (Box A ticked - unless you've left something out) you should be on Code 747L (Emergency code). So no tax would be being deducted.

Where you're PAYE and SA ..... you can basically choose which the personal allowance is set against. As it all comes out in the wash when you file your Return. In your case (for this year) .... the PA being set against employment seems preferable.

If you're commuting from home to the PAYE job - that's solely your expense.