Self Employed to Employed

lisa701

Having been made redundant last year and been unable to find work my hubby decided to go self employed at the end of April this year. He has been working on and off since then, but someone has now offered him an employed position.

Having never been self employed before its all very new to us both so neither of us know what is involved in going from self employed to employed.

I assume he will have to complete a P46 for his new employers so they can obtain a tax code and he will still need to complete a self assessment form at the end of the 12/13 tax year. Is that right?

Will he pay more tax on his employed wages than I would as someone who has never been self employed.

Thanks

InsideInsurance

You are right re the P46 and tax return but he will also need to inform HMRC before then that he has ceased trading to stop the need for Class 2 NIC

When you complete the SA return you need to ensure you check the box to say you've ceased trading and enter the date

Mistral001

If he has only been self-employed since April it is very unlikely that he has paid any income tax yet on his self-employment. That is all perfectly legal, but the profit made on his self-employment needs to be worked out at some time and the sooner the better would do no harm. He would need to make sure that all payments due for his self-employment had been made before working out the final profit on his self-employment.

lisa701

Thanks guys. His accounts are all up to date so its easy to calculate his profit to date. Still got a couple more weeks until he starts employed work.

Thanks for the advice to contact HMRC over Class 2 NIC. I thought he would have to continue with paying it until the end of the tax year despite his business ceasing trading prior to that date.