self employed to PAYE & p46

Beki88

Hi looking for some help please hope this is the right forum.
From October to Jan 31st I have been self employed on a contractor basis. The company has now employed me as PAYE. They have given me a P46 to fill in, but looking at the box titled Your Present Circumstances I am not sure what to put.
I should be under my personal allowance from Oct-Jan but I also get Carers Allowance. Obviously I will no longer be self employed. But wasn't sure if this would be classed as my first job given SE works differently.
It all confuses me to be honest and I don't want to end up owing tax/paying too much/emergency taxed!
Thanks a lot.

Mudd14

You would tick box A;
A – This is my first job since last 6 April and
I have not been receiving taxable Jobseeker's
Allowance, Employment and Support Allowance
or taxable Incapacity Benefit or a state or
occupational pension.

As you have not had another employed job in the tax year.

When you do your self assessment for the year you will report you employed work and tax paid along with the section for self employed work. As you would receive your tax free allowance in your employed work self employed net profit would be at 20% (or higher depending on earnings). So it may be a good idea to put away 20% (or 40% if in the higher tax bracket) to pay the tax bill (or have it reduced from your following years personal allowance).

Beki88

Thank you for your reply.
Just a quick query with the second part of the post. Even with the employment and self employed wages I would be under the personal allowance so am I likely to have to pay tax and then be owed it back? Or am I being a bit daft? Thanks

chrisbur

Beki88 wrote: »

Thank you for your reply.
Just a quick query with the second part of the post. Even with the employment and self employed wages I would be under the personal allowance so am I likely to have to pay tax and then be owed it back? Or am I being a bit daft? Thanks

If you tick box A you will be given the emergency tax on a cumulative basis, this means that as long as your earnings in this job fall below £8105 you will pay no tax. As you will be on the emergency tax code your correct tax code might be different but unless you have tax owing from the past or some sort of benefit from your job eg health insurance or company car then the emergency tax code will allmost certainly be the same as the tax code you eventually get.