SE to Employed - what do I do about tax?

Forris

Hi

I have been self-employed (as a courier) since 1994, but I am now going back to the security of an employed job. I hope someone can answer a few tax-related questions. The main points are:

My new job starts on 5th December;

I have been doing my own accounts and file online;

I have a self-employed evening delivery job which I intend to carry on with;

My wife is employed but earns under her personal tax threshold (£6912 pa);

The pay for my new job will be approx £26K;

My questions are:

After I notify HMRC of my change in status, will I still have until January 2013 to file my return for 2011/12 ?

I have the option of changing the evening job into my wife's name to take advantage of her 'unused' tax allowance - is this allowed ?

Thanks in advance.

chrismac1

First question - yes, 31 jan 2013. You'll simply add the P60 gross pay, tax paid and employer details in the employment section, self-employed section as before.

Second question - unless your wife is doing the work the answer is no. However, should she be carrying out part of the work - for example on the admin. side, accounts side, office support and suchlike then you can treat a reasonable sum as her "wages" for this, just like a "use of own home" expense deduction if you're doing some admin. at home. She does not have to be doing too much to justify a £550 salary for the year.

CLAPTON

I see no reason to tell HMRC about your PAYE job as such; your empolyed will provide details of the job and your earnings.

There is no change of status as you are still self employed and so need to fill in SE in the normal way; it will also include details of your PAYE job even though it has already been taxed.