Self employed to Paye

pennyslane

Hi can anyone please explain what happens...........

My partner has been selfemployed for 11 years. His main contractor has offered him a PAYE job. We are glad to take up this offer for stability and holiday pay minus the accountanty fee's stress of keeping on top of the business and would like to start a family so its really appealing.

what happens if he goes PAYE in the next 3 months? we havent completed 06-07 self assesment form yet, Hoping to do this around september.

Is there anything we should be aware of or anything we need to do?
Penny

malcindebt

Nothing at all. All he will need to do is ensure that when he does his 2007/08 tax return he shows a date of cessation on the self employment page.

His employer will take care of everything with regard to the PAYE transition.

However, once he is PAYE contact the NIC class 2 helpline to stop payment of class 2 NI.

WHA

Just make sure that you use the online payroll calculators to see just how much "net" take home pay he will get. He will no longer get tax relief on his expenses and NIC is higher for employees than self employed, so you may get a shock when he gets his first payslip.

pennyslane

cheers for replying you two,

Any advice where to use the payroll calculator?

Regards
penny

echinacea_2

pennyslane wrote: »

Any advice where to use the payroll calculator?

This link is the one I often use. Quite handy and easy to use.. http://www.listentotaxman.com/

pennyslane

Thanks for the link echinacea, yup the tax and NI deductions are pretty steep _
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:cool: although im sure being PAYE will benefit us more, and we wont have the same deductions to pay out per month.

I think the stigma of being selfemployed will finally be behind us.

Fingers crossed to a smooth future:beer:

echinacea_2

Good luck and all the best with that, Penny!

Ech