Tax Return Question

dose

So, I'm currently filling in my tax return online.
During the 2010-2011 tax year I was working freelance. From April 2011 I started in full-time employment and have only done one small freelance job in that time.

So, I'm up to the following question:
"If you are likely to owe tax for 2011-12 on income other than employed earnings or pensions, do you want us to use your 2011-12 PAYE tax code to collect that tax during the year?"
What do I put for this? The question isn't clear to me.

The next section then talks about taking next years tax off me in two parts, where I would have to lower the amount as I have hardly earnt anything as a freelancer.
Hope someone can clear this up for me.
Thanks in advance!

SGina

It means, if you owe them any tax would you like them to collect it through your paid employment e.g. the amount owed will be deducted each month throughout 2012-13. If you say no (and owe them money) you may need to pay them in one lump sum.

Savvy_Sue

There's more help in the Cutting Tax board if you wanted to head over there.

dose

Ok I see. So I should choose 'Yes' and lower the 2011-2012 amount to what I think I will have to pay in tax for the freelance work?

SGina

You can answer 'yes' and they will adjust your tax code accordingly. You don't have to do any adjustment.

dose

But if I choose Yes and click through, it tells me I have to pay the full amount of tax for 10-11 (obviously) and then half of that again for 11-12, which I don't want to be paying as I will not be owing anywhere near that amount for 11-12. So surely I should give a smaller figure that I think I will have to pay, in the 'Adjustments to tax due' section that appears after choosing Yes?
Thanks for your help by the way : )