Basic tax question

ojwk

1. I left my old job in July 2014 and was paid via PAYE while working there.
2. I then started a new short term job in September and was again paid via PAYE.
3. I then left that job in January and became self employed from January through to present day.

As I'm now self-employed I need to fill out a tax return from April 2014 - April 2015. I suppose I need my P45 forms from
both previous jobs to show how much tax i've paid? Do I simply add up all the income (PAYE jobs and self employed) in the appropriate box on the tax return?
How does HMRC know that I have already paid tax for my PAYE jobs? Do I have to spell it out for them?

Last thing I want is to get a huge tax bill when I have already paid it on the PAYE jobs!

PlutoinCapricorn

You have until Jan 31st 2016 to complete this return online, and you can complete it in sections until you are ready to submit it.

You will be asked about employment, and should input the details for each employer, which included tax paid. These figures often come from a P60, but P45s are ok. This is quite separate from the self-employment section.

jem16

ojwk wrote: »

I suppose I need my P45 forms from
both previous jobs to show how much tax i've paid?

Yes, although do be aware that the 2nd P45 may include tax details carried over from the first P45.

Do I simply add up all the income (PAYE jobs and self employed) in the appropriate box on the tax return?

There will be a section for employment income and a section for self-employed income.

How does HMRC know that I have already paid tax for my PAYE jobs? Do I have to spell it out for them?

The tax return asks you to fill in tax already paid through PAYE.

Last thing I want is to get a huge tax bill when I have already paid it on the PAYE jobs!

If you fill in the form correctly, you won't.

[Deleted User]

When you fill in the form, you'll be saying something like this:

Job A: Earnt £3000, Paid £1000 tax
Job B: Earnt £2000, Paid £2 tax
Self Employed: Earnt £5000 profit

Total I earnt: £10000
Total tax I've already paid: £1002

And they'll work it out as to whether you've over- or under-paid from that.

ojwk

Many thanks all.

Last question I have; in terms of the 'profit' from my self employed income, I take it that that is the the revenue minus 'allowable expenses'. Ie. expenses wholly and exclusively relating to my work. How does this work for capital equipment ie. a computer I bought that I use partially for work partially for home use?

Could I also claim Oyster card fees to and from work as an allowable expense?

Many thanks

Caz3121

ojwk wrote: »

Could I also claim Oyster card fees to and from work as an allowable expense?

assuming you mean as self employed then travel costs can be allowed.
As an employee commuting to and from a permanent place of work is not business travel and not permitted