Self employment, first full time job, P46?

wnoktnwbr

Hi,

I'm self employed and have been forever (first job was self employment, which is over at least 1 tax year ago so I currently only have self employment income which is taxable) and I am now moving into working full time for a company I've been contracting for. I've been sent a P46 to fill in, everything seems okay but it asks:

"This is my first job since last April 6 and I have not been receiving taxable Jobseeker's Allowance of taxabale incapacity benefit or a state or occupational pension"

Which is true if Self Employment is not considered a job.

is it?

wnoktnwbr

bumpity, any ideas?

Savvy_Sue

I'd tick that box: you'll then have your tax correctly deducted from this job, and you'll do self assessment for your s/e income as you always have.

persa

If you tick box A, your employer will take into account your personal allowance when determining how much tax you have to pay. If you tick box C, you'll end up on basic rate with no allowances.

If you are self employed, you'll have to declare your (already taxed) employment income together with your self employment income when working out your tax liability for the financial year, so your tax position will sort itself out in the end. I'd be inclined to tick box A purely because it would be better for you from a cash flow perspective.

Hopefully someone like chrisbur will pick up on this thread though and be able to give you a more definitive answer - logically, box A makes sense to me, but I don't deal with PAYE.

wnoktnwbr

Well, I went with A like persa said, if the taxman hunts me down I'll send him your way ;-)

Thanks for the help.