Ceasing self employment and becoming employee

nwc389

My son has been working as a freelance sports coach but has now started work for a company and will be salaried.
He now needs to be switched from self assessment to PAYE , I have been helping him with his tax affairs and as far as I can see all that needs to be done is to send in a form to declare this and to submit his earnings so far this year so can anyone confirm that this is right ?
He doesn't expect to earn enough to pay tax this tax year so hopefully it will be a smooth transition.

xylophone

You can be on PAYE and yet still need to self assess!

https://www.gov.uk/stop-being-self-employed

nwc389

xylophone wrote: »

You can be on PAYE and yet still need to self assess!

https://www.gov.uk/stop-being-self-employed

Can he request to go back on PAYE ?

[Deleted User]

nwc389 wrote: »

My son has been working as a freelance sports coach but has now started work for a company and will be salaried.
He now needs to be switched from self assessment to PAYE , I have been helping him with his tax affairs and as far as I can see all that needs to be done is to send in a form to declare this and to submit his earnings so far this year so can anyone confirm that this is right ?
He doesn't expect to earn enough to pay tax this tax year so hopefully it will be a smooth transition.

You don't switch from self-assessment to PAYE - perhaps from self-employment to PAYE!

So -for the tax year 2016/17 a return has to be submitted to include:

self-employed income from 6th April 2016 to the date he ceased

AND

his PAYE income from now until 5th April 2017.

This cannot be completed until after April 2017. Hopefully HMRC will close down his self-assessment obligations when it is seen that his tax affairs no longer justify a return.

nwc389

[Deleted User] wrote:

You don't switch from self-assessment to PAYE - perhaps from self-employment to PAYE!

So -for the tax year 2016/17 a return has to be submitted to include:

self-employed income from 6th April 2016 to the date he ceased

AND

his PAYE income from now until 5th April 2017.

This cannot be completed until after April 2017. Hopefully HMRC will close down his self-assessment obligations when it is seen that his tax affairs no longer justify a return.

Cheers , I should have said self employment :embarasse
I'll send the notification form off asap and then collect his income details ready to send away in April . It's all a bit stressful at the moment as he's not had a lot of money coming in with the freelance and had to work a full month before getting paid and he's terrified that he will be on some sort of emergency tax code even though his salary is way below the tax threshold.

CLAPTON

nwc389 wrote: »

Cheers , I should have said self employment :embarasse
I'll send the notification form off asap and then collect his income details ready to send away in April . It's all a bit stressful at the moment as he's not had a lot of money coming in with the freelance and had to work a full month before getting paid and he's terrified that he will be on some sort of emergency tax code even though his salary is way below the tax threshold.

when he started work he should have said that they were his only employment

Savvy_Sue

CLAPTON wrote: »

when he started work he should have said that they were his only employment

Specifically, he should have been asked to complete HMRC's new starter form.

If he did not, then his tax code may be wrong, but it shouldn't take long to sort it out.