Staying self employed and becoming employed

ManamVous

I’ve been self employed for 4 years and I'm becoming employed in October, but I would like to continue doing some of my self employed work alongside my employment. My employers are fine with this. I have two questions:
1 - what do I need to give my new employers to ensure they can set up my salary smoothly, I don’t have a P60 etc. and I’d like to avoid being put on emergency tax if possible
2 - will this mean I have to pay more in tax because I am employed and self-employed?

Darksparkle

Your employer will have you complete a starter checklist.

If you have had no taxable benefits or employment in this tax year you will be put on tax code 1100L.

You'll pay tax on your total taxable income, just the same as you do now. Whether you pay more tax depends on the figures. Same with NIC.

Savvy_Sue

ManamVous wrote: »

I’ve been self employed for 4 years and I'm becoming employed in October, but I would like to continue doing some of my self employed work alongside my employment. My employers are fine with this. I have two questions:
1 - what do I need to give my new employers to ensure they can set up my salary smoothly, I don’t have a P60 etc. and I’d like to avoid being put on emergency tax if possible

A P60 is of no use to an employer under any circumstances: it shows how much tax you've paid in a previous tax year with a given employer.

As I said recently elsewhere:

Savvy_Sue wrote: »

If you don't have a P45 from the current tax year, then your employer should get you to complete a 'New Starter form' - it used to be called a P46 until HMRC in their wisdom decided to lose its number. That should get your tax code sorted.

If you haven't already shown your passport as proof of your right to work in the UK, then they should ask for that too.

Other than that, take any forms they've sent you and asked you to complete, and make sure you know or have details of your NINo and bank account handy.

ManamVous wrote: »

2 - will this mean I have to pay more in tax because I am employed and self-employed?

No. HMRC don't care where your money comes from, as long as you declare everything you need to and pay the appropriate amount of tax, either through PAYE or other means.

You can, I believe and if you wish, choose to pay your self-employed tax through your employment if HMRC adjust your tax code, but if your self-employed income fluctuates and you're used to doing a tax return, then I'd do it that way.

Do you make payments on account each year for your self-employment? If you do, are you expecting your s/e income to reduce significantly now you're also employed?

ManamVous

Savvy_Sue wrote: »

Do you make payments on account each year for your self-employment? If you do, are you expecting your s/e income to reduce significantly now you're also employed?

Yes I make payments on account each year and I am expecting my s/e income to reduce significantly when I start employment.
Thank you, these replies from you both are so helpful, it's my first time using this forum.

Savvy_Sue

OK, then there's a way of reducing your payments on account, make sure you don't underestimate what you're due to pay because they will charge interest on any underpayment, but at least you won't have to find so much up front.

I'm hoping someone will either tell you how to reduce payments on account, or you'll work it out from the HRMC site, or you'll find it somewhere else on this board, I know there's a recent thread and I ought to be able to find it but I'm afraid I need a screen break now!

[Deleted User]

ManamVous wrote: »

Yes I make payments on account each year and I am expecting my s/e income to reduce significantly when I start employment.
Thank you, these replies from you both are so helpful, it's my first time using this forum.

Careful - your self-employed profits may well reduce but , because your personal allowances may be used elsewhere, all will be taxed at 20%.

This is what savvy sue was referring to - can also be done online!

https://www.gov.uk/government/publications/self-assessment-claim-to-reduce-payments-on-account-sa303

CLAPTON

when you complete the new starter checklist, remember that your self employment does NOT count as another job

Savvy_Sue

See, this is what I love about this site, I chip in with what I know, and others add / expand / correct things I'd never even thought of!

ManamVous

This is all super helpful, thank you everyone. I will look into reducing my payments on account and thank you Clapton for the reassurance on ticking the right box on the starter checklist. Great forum.