Self-Employment to Employee

LittleVoice

Confused25 wrote: »

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Also I was told this morning that when I do the self-assessment in April 2014 that I will have to declare all of my income from both self-employment and this job. I asked whether I would be taxed twice on the amount earn't as an employee but the answer was ambiguous (I assume that I will receive a refund if I pay too much). This is when she mentioned the penalties - that I would be fined if I didn't put the whole amount earn't from self-employment AND as an employee now on the self assessment in April 2014. (I'm sorry if these are obvious questions but I am trying to figure everything out from the basics!)
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Yes - you have to report all your income when you do the self-assessment return. So income from self-employment, PAYE work, savings interest (other than from ISAs or other tax-exempt savings), dividends. (You'd also need to note any JSA received but I don't think you claimed so there would be nothing to report.)

You pay tax on the whole lot BUT the tax deducted through PAYE is taken off the total due as is the tax paid in relation to savings and dividend income. You would only have to pay the difference. Of course, if you have been paying tax on a Month 1/Week 1 basis, there will be a amount due to you.