Employed & self-employed: calculation, does this seem right?

cjakers147

Hi all, I'd appreciate a look at these figures to see if the calculation for tax year 2018-19 I'm getting from HMRC seems right to you. I work for a company for some weeks of the year, and for the rest of the year I am freelance thus classed as self-employed.

Figures:
Company
Total: £11510.66
NIC: £1045.56
PAYE: £1116.20

Freelance
Total profit £7808.50

Total earned: £19318.50
Total deducted: £2161.76

Despite this, HMRC calculation suggests I owe a further £490 in tax, and £153 in NI contributions. Does this seem right to you? Should I have included NI contributions deducted by the employer in the 'total tax deducted' section of the return?

Thanks very much in advance folks.

Pennywise

NIC is completely different to tax, so no, you don't include the NIC in tax deducted.

The NIC is the NIC due on the business profits which looks about right.

There is tax of around £2k on the business profits.

More tax than expected has been deducted from your wages, so you'd need to check your PAYE tax code to see how it was made up - it may have included an estimate of your self employment, or there may be taxable benefits or maybe underpayment of tax from an earlier year.

Overall, too little information to say one way or another - come back with your PAYE tax code notice breakdown.

cjakers147

Thanks for your reply. Employment tax code is 1185L N - does this give any more insight?

Dazed_and_confused

Your figures don't make sense as far as the tax is concerned. Has your post omitted some relevant information you included on the return?

Employment £11,510.66
Profits £7,808.50
Total income £19,319
Less Personal Allowance £11,850
Income to be taxed £7,469
£7,469 x 20% = £1,493.80
Less tax paid £1,116.20
Balance to pay £377.60

NB. You haven't told us where you are resident for tax purposes so based on your tax code I've assumed it's not Scotland. Scottish resident calculation would be slightly different.