Moving from employed to self employed

jules1973

Hi.

I have worked in a PAYE job since Jan. This tax year I have paid about £2000 in tax but am now leaving my PAYE job to become self employed. From last year's self employment return I owe about £2800 inc POA.

How will it work with the £2000 I've paid in PAYE tax. Will it be refunded if I don't take another employed job, will it be offset against last years tax bill or will it be offset against self employment tax return for year ending April 2017.

[Deleted User]

All of your income is declared on your tax return to create a tax liability. All of the tax that you have paid will be deducted from that figure to leave a final balance owing or refundable.

anselld

Depends how much you earn for the rest of the year, but it probably wont be offset against anything because it is the tax due on your PAYE earnings.

Cook_County

But you can set any trading losses against employment income if losses happen.

polymaff

jules1973 wrote: »

Hi.

I have worked in a PAYE job since Jan. This tax year I have paid about £2000 in tax but am now leaving my PAYE job to become self employed. From last year's self employment return I owe about £2800 inc POA.

How will it work with the £2000 I've paid in PAYE tax. Will it be refunded if I don't take another employed job, will it be offset against last years tax bill or will it be offset against self employment tax return for year ending April 2017.

I'd estimate that about a third of the tax paid under PAYE is legitimate. Knowing your PAYE tax code would help to firm up the estimate - but don't expect to get "it" all back.