Self employed for half the year question

Mr.Wrong

Hi all, I was self employed from April 6th 2016 to December 12tg 2016, since January 2017 I have been employed through agency.
My total income before tax for self employment was £13,825 and my tax deductions were £2767.

So given my £11,000 tax free allowance I should have had £2825 taxable.
So I should be due a rebate of roughly £2200 before NI is taken.

However I've put my employment details in fro January to now and my rebate calculation has dropped to £940 before NI Is taken out.


MUST I PUT MY EMPLOYED DETAILS IN MY SELF ASSESSMENT?
if I don't then my rebate will go right back up again.

Thanks in advance

[Deleted User]

Of course you do - you return all of your income. You only get one personal allowance so, presumably, the difference is 20% of the employment income less whatever tax you paid at the employment (presumably Nil)

alewin

Mr.Wrong wrote: »

MUST I PUT MY EMPLOYED DETAILS IN MY SELF ASSESSMENT?
if I don't then my rebate will go right back up again.

Yes, you have to enter all your income for the tax year.
The £11,000 personal tax allowance isn't just for your self employed income, it's for the income in the whole year.

You are not taxed on just the £2825, it's that plus your agency earnings in January, February and March.

Mr.Wrong

My agency earnings are approximately £4,370 and tax paid is around £400
Isn't 10% tax about right (these figures aren't exact but are very close to the actual amounts)

Also I keep getting a error 404 - not found message when trying to complete my return, anyone else get this?

Wookey

You need to be sure that you are making the correct allowances in your expenses whilst self employed, transport costs, office use of a room in your house, phone, broadband, tools, stationery, pc etc etc etc. You don't mention what sector this self employment was in and if there where any contractor deductions made before you where paid whilst self employed, these if deducted also need to be added in as earnings.

As everyone else has said, you get one personal allowance between 6th april 16 and 5th april 17, if you made pension payments during that time these would get you the tax back via your pension.

Your tax code from the agency might be slightly different, rather than 1100L it could be 1100 BR or OT, whilst not effecting the allowance you get it will show to HRMC as there being a second income.

agrinnall

Mr.Wrong wrote: »

Also I keep getting a error 404 - not found message when trying to complete my return, anyone else get this?

Yes they are. I would take note of chrismac1's post and postpone doing anything for a few days.

https://forums.moneysavingexpert.com/discussion/5629751

chrisbur

eggha wrote: »

his tax code is visible on the payslip he has posted on his other thread, it is non cumulative 1100L/X and therefore reflects the fact he started employment part way through the tax year without being able to provide a P45 with an existing code on it so was put on "emergency" code

as the tax year has now rolled over to give 11,500 as the allowance for 17/18 this webpage has been updated, but the principle is explained here: https://www.gov.uk/employee-tax-codes/overview

The GOV.UK site does sometimes oversimplify things. For example
"1150L is an emergency tax code only if followed by ‘W1’, ‘M1’ or ‘X’. Emergency codes can be used if a new employee doesn’t have a P45."

There are circumstances when the emergency code can be used on a cumulative basis. In this case the OP could have made a starter declaration that this was their first employment in the tax year and avoided paying tax until they had made their self assessment and the tax for that was due.
Not every payroll system uses W1 M1 or X to show a non-cumulative tax code and just not having a P45 is not enough to use the emergency tax code, a suitable starter declaration is also required.

Mr.Wrong

Up until Christmas I had 20% tax deducted from my wages through the CIS scheme.
I have contacted my pay company as I work through an agency and they said my tax code is correct.
Each week my tax and NI vary by the total amount of expenses I put through.
Does this help? I feel a bit lose haha

Dazed_and_confused

What is your problem?

Others have explained you need to include all of your income on your tax return, it's not pick'n'mix!

If you had paid more tax on your PAYE job i guess you'd be wanting to declare that and miss off your business income??

If you go ahead and miss off the PAYE income you are highly unlikely to get any repayment anytime soon. If you check out the other lengthy threads on here from people who file their returns early they often have repayments held up and it often turns out they'd mucked up filling in the tax return and the HMRC sorted that out before giving out big refunds.

Mr.Wrong

The problem is I don't understand how I paid 20% tax as self
Employed which when rebated to me turns out I paid around 12% tax.
But whilst being employed for only a few months and paying 10% tax they want an additional £650 tax which would make my
Employed tax a Total of 25%

I just can't wrack my brains around how I could pay 25% tax on a low income.