Taxation on 2 jobs - Self assessment

joepisa25

I have recently retired from the Police Service and I am starting a new role. I have never had to undertake self assessment and I would be really keen to understand the requirements as I have my pension to declare as my new company will tax me on my new salary.  Im also looking for either software (Free) or an excel spreadsheet that I can use to record my income for tax purposes for the next year.  Can anyone help thanks.  

[Deleted User]

May I ask why you believe that you have to complete a self-assessment return?

joepisa25

I believe taht due to having a new job and a pension giving me a total earnings over £65000  i need to submit a self assessment.  my new company will pay the tax on my new salary and I have been told that I will need to pay the rest by self assessment 

Dazed_and_C0nfused

Are you part of a family receiving Child Benefit?

If not I don't see any obvious reason why Self Assessment return would be necessary.

Unless Child Benefit is involved earning £65,000 from employment and pensions isn't usually a reason to need to complete a tax return.

Both the employment and pension will be paid under PAYE.  There may be a bit of juggling with tax codes at the beginning, particularly if neither source on their own exceeds £50,270 but you should definitely be paying tax on the pension just as you would with a job.

[Deleted User]

joepisa25 said:

I believe taht due to having a new job and a pension giving me a total earnings over £65000  i need to submit a self assessment.  my new company will pay the tax on my new salary and I have been told that I will need to pay the rest by self assessment 

I suspect that, by believing that you need to ‘report’ the new pension, you are not aware that PAYE will be operated on this income by the provider. Occupational pensions are treated in the same manner as any other income, unlike state pensions.

joepisa25

Folks  thanks fr the comments and help does that mean that I will be taxed on both my new salary and my pension at source and will not require to complete a self assessment form

Dazed_and_C0nfused

Probably but as we don't know your full circumstances it's impossible to say for certain.

Irrespective of the need for a return when you have two sources of income which are both less than the higher rate limit but over the limit when combined there is likely to be some adjustment due after each tax year ends i.e. a refund due to you or extra tax owed to HMRC.

You can minimize that by ensuring the tax codes HMRC issue to each employer/pension payer are accurate.  For example check the annual earnings they have estimated is what you expect to be paid.

[Deleted User]

joepisa25 said:

Folks  thanks fr the comments and help does that mean that I will be taxed on both my new salary and my pension at source and will not require to complete a self assessment form

Correct. Your occupational pension will be taxed in the same manner as an additional employment (apart from the fact that there will be no NIC payable)