Paying tax on the side job without changes to the tax code

Cpu2007

CLAPTON wrote: »

P45 and P60 are produced by employers and have nothing at all to do with self employment.

if you started your self employed work after april 2016 then you will need to submit a tax return AFTER April 2017 and BEFORE end of jan 2018
You will need to pay any tax before the end of Jan 2018 : in general, you can pay the tax (and any NI) in one lump sum so your main job PAYE tax code will remain unchanged. Sometimes HMRC give the option of changing your PAYE taxcode to recover small amounts of tax.


In any event, even if your tax code changes there are dozens of reasons why your tax code can be non standard and your emplyer won't query why its changed.

So the P45/P60 given to my new employer will not have earnings included from my self employer right ? and it won't have tax deducted from my self employment right?

polymaff

Cpu2007 wrote: »

So the P45/P60 given to my new employer will not have earnings included from my self employer right ? and it won't have tax deducted from my self employment right?

The new employer will not have any access to information on your other earnings - nor the make-up of your PAYE coding. As for wanting to keep a 1100L PAYE code - that's up to you, but the simplest and most efficient way to let the tax on your SE be collected is to opt for it being collected via what is known as "coding out".

BTW that quote from this year's budget is hostage to change by the new government.

CLAPTON

Cpu2007 wrote: »

So the P45/P60 given to my new employer will not have earnings included from my self employer right ? and it won't have tax deducted from my self employment right?

your P45 will have the totals from your current PAYE employment from april 2016 and your leaving tax code and nothing to do with your self emplyment earnings.

when you join a new company you give them your P45 : do not say you have two jobs as this will confuse them

a P60 is only issued by whoever is employing you at tax year end and isn't given to a new employer.

you do need to tell HMRC that you are starting self employment as they will need to write to you after april 2017 or set you up on their online system so you can enter your year details.