Employed and Self Employed in 2010/11

mummyemmy

I am busy doing my husband's tax return online and just wanted to check something.

He was still working as an employee in April 2010 up until the end of September 2010, then became self-employed.

Am I right in thinking the online self assessment will ask all about his employee earnings first and then go on to ask him about the self employed earnings? At present we have mislaid his P45 so have come to a standstill so can't go any further! Thought I'd ask the question now instead of waiting to see what it's going to ask once the P45 has been found!!

Also another question, he has obviously paid some tax through PAYE for 2010/11 and may need to pay a little bit more on his self employed earnings. Now he is just self employed, earning a very low income (below the tax threshold) will HMRC still estimate his tax taking 2010/11 earnings into account or will it be based on what we estimate as earnings (just from self employment).

We appreciate any advice - thanks

Mikeyorks

mummyemmy wrote: »

Am I right in thinking the online self assessment will ask all about his employee earnings first and then go on to ask him about the self employed earnings?

No. You need to complete (they're linked) both the self employed return and the employed pages.

Also another question, he has obviously paid some tax through PAYE for 2010/11 and may need to pay a little bit more on his self employed earnings. Now he is just self employed, earning a very low income (below the tax threshold) will HMRC still estimate his tax taking 2010/11 earnings into account

The Return will add the employed income / self employed profit together. Deduct the personal allowance - calculate the overall tax etc due and then deduct the tax paid under PAYE.

mummyemmy

Mikeyorks wrote: »

No. You need to complete (they're linked) both the self employed return and the employed pages.

Thanks, doing it right then....

The Return will add the employed income / self employed profit together. Deduct the personal allowance - calculate the overall tax etc due and then deduct the tax paid under PAYE.

Sorry I mean at the end they normally work out how much tax you will have to pay for the next FY 2011/12, he obviously won't have any income as an employee just as self employed and this amount will be under the tax threshold, we don't wanna end up having to pay as much tax as in 2010/11 and then wait a year for a rebate....

Mikeyorks

mummyemmy wrote: »

Sorry I mean at the end they normally work out how much tax you will have to pay for the next FY 2011/12, he obviously won't have any income as an employee just as self employed and this amount will be under the tax threshold, we don't wanna end up having to pay as much tax as in 2010/11 and then wait a year for a rebate....

Sorry - misunderstood.

If the tax due (excluding the PAYE) for 10-11 is £1k or more then they'll ask for Payments on Account (POAs) of 50% of that amount 31st Jan and 31st July 2012.

If that happens - and you're confident there will be no tax due in 11-12 - then you can reduce the POAs. All the way to £zero if appropriate. You can do that online .... should mention SA303. Link to the form here - but you should be able to do it via your online access.

http://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=HtoHIJE_f8M&formId=880

ceeforcat

Yes - it asks if you wish to reduce payments on account at the final calculation summary page.