No tax paid this month!

Lu_Lu

A bit of background; my husband was made redundant at the end of January and claimed jsa. In July he started contracting and became self employed and at the beginning of December he started a new permanent role for a company back on PAYE.

Whilst he was contracting we've put aside money for tax and in for when he does his tax return and will get that sorted as soon as we can but he has now ceased trading as a self employed person.

He just got his December payslip for his new job and there is 0 tax on it with a tax code of 1303L. I presume that this is because for HMRC it looks like he hasn't earned anything this year but also presume we want him to be paying tax through employment so were not stung even more through self assessment?

I think he's going to call HMRC and make sure they know he has ceased trading but is this something we need to worry about?

I think I will put the extra salary away with the other tax money just in case!

xylophone

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

booksurr

1303L means he is getting extra tax releif over and above the standard allowance of £11,000 this year (code 1100) so when you contact HMRC make sure you understand how his code has been calculated otherwise you will find yourself with an even bigger underpayment if he should only be on 1100 anyway

Lu_Lu

Thanks. He has told HMRC that he's not self employed anymore and will ring them tomorrow about the tax code.