Self-Assessment with PAYE Employment

GSMGSM

Hi there,

Up until December 2014, I worked self employed and have handed in 2 self-assessment tax returns for the 2 years previous to this. However, in December, I gave a notice to cease trading, as I was starting full time employment in January 2015. My self-employment and PAYE employment did not overlap.

However, I still have to hand in a self-assessment for 2014/2015, so I'm wondering what things I need to be aware of when doing this, and how to take account of the fact that some of my earnings in this year are PAYE, whilst others are from self-employment.

I did not earn very much during my self-employment, so probably don't owe very much tax on it, if anything, but not sure how the PAYE and self-employment incomes get amalgamated for tax purposes.

Any advice welcome!

MDMD

There will be an option in the 'tailor your return' section to declare employment income (and tax). The calculation will then add all the income together, deduct the tax already paid, you then pay the balance.

CLAPTON

you must include all your income so both SE and PAYE for the year 2014-15

[Deleted User]

Another point is to ensure that you file a return for 2015/16 if you receive a 'notice to file' as is likely. Even though you may have only PAYE earnings in that year you must file if requested

GSMGSM

[Deleted User] wrote:

Another point is to ensure that you file a return for 2015/16 if you receive a 'notice to file' as is likely. Even though you may have only PAYE earnings in that year you must file if requested

Is this likely, given that I ceased trading in December 2014, 4 months before the of the 14/15 financial year?

I mean, I guess it wouldn't be a total hassle to fill one out, but I don't understand why they would bother requesting one?

GSMGSM

MDMD wrote: »

There will be an option in the 'tailor your return' section to declare employment income (and tax). The calculation will then add all the income together, deduct the tax already paid, you then pay the balance.

Will they know automatically how much tax I've paid on my PAYE income? Or will it have to be entered manually from payslips, etc?

Pennywise

GSMGSM wrote: »

Will they know automatically how much tax I've paid on my PAYE income? Or will it have to be entered manually from payslips, etc?

You have to enter all relevant information on your SA return. There's a clue in the name "self" assessment. You'll have the information on your P60 which your employer should have given you in April or May.

pinkteapot

GSMGSM wrote: »

Is this likely, given that I ceased trading in December 2014, 4 months before the of the 14/15 financial year?

I mean, I guess it wouldn't be a total hassle to fill one out, but I don't understand why they would bother requesting one?

I used to freelance alongside PAYE work, and then gave it up so was only PAYE. I did a further two tax returns on request, then phoned HMRC to ask why I had to do them. They pressed some buttons on their system and I didn't get any more requests!

Don't be surprised if they make you do a few more. As you say, they only take five minutes if all you have is PAYE income and you do it from your P60.

[Deleted User]

GSMGSM - you will be depending on HMRC removing you from self-assessment before April 2016. That is a big assumption.

There are many stories on here of people who have had large fines because they have not completed a tax return. The majority choose to ignore as 'they do not see why they are required to complete a return' which is a completely irrelevant premise.

I was trying to help you to avoid such a scenario.