Need advice- haven't been taxed!

pebble17

I was self employed between april and september this year. i ended my self employment when I started back in a full time employed job on 3rd Sept.
I received my first months pay yesterday and I haven't been taxed on my earnings. My basic pay is £26,544 plus unsocial hours and mileage. Obviously I won't earn £26k for the year because of starting half way through a tax year.
I've spoke to payroll and they said that the inland revenue told them to give me the tax code 810L CUMUL as I hadn't had any earning yet in this tax year. But obviously I have had earnings but HMRC won't know about it until I file my tax return next year.

Am I going to end up with I huge tax bill next year? How can I sort this out?

00ec25

when you do your tax return for 12/13 you will be declaring both the self employed and employed income

therefore the fact that the employment income has been given the benefit of the full cumulative tax code will not matter at the year end becuase you wuill be declaring the total income against the full tax code so the net effect will be you will owe the correct amount of tax on the combined total income provided you fill out the SA return correctly

Dazed_and_confused

It won't make any difference overall, you will pay more of the tax due for 12/13 at a later date. If you want to avoid a big one off bill you could ask for your code to be changed to an emergency basis (this is the normal code number but you get 1/12 of your tax free amount each month only) for the rest of this tax year so you pay some tax now and have a smaller bill when you do your tax return.

CLAPTON

best to make sure you are putting suficient aside to pay the tax next year.

pebble17

Thank you.
I spoke to the company who do my tax returns and they said it was because HMRC can't estimate my self employment income, they also suggested asking to be put on BR. It seems the best option because although my tax money has already been put aside from my self employment income, I don't want the shock of a huge tax bill next year.

jennifernil

If you have already put the tax money aside, why pay more than you have to now?

You don't pay on your SE for 2012/13 until January 2014, so as long as you have enough set aside to cover the tax and NI, you could keep it in the bank and earn a bit of interest on it.