Tax and Two Jobs

adewolves

I am both self-employed and employed. I have been self-employed since November 2021, so I haven't had to do a self-assessment. My earnings from self-employment are only around £400 - 500 per month, and I had my money topped up through universal credit. I took on some part-time work in May to reduce my reliance on Universal credit, and although it is only 10 hours a week, it increases my overall earnings to around £800- 900 each month.

As I've never had 2 jobs before I didn't realise I would be paying basic rate tax on one of them, my new job. Now obviously I wouldn't be paying 20% tax on earnings of around £400. Will I get a refund next tax year automatically or will I have to claim some back because I work as both an employee and self-employed?

[Deleted User]

If your total earnings from both jobs are £900 per month you should not be paying tax at all. Even if you were liable to tax it would be reasonable to have all your allowances at your PAYE job - contact HMRC and explain the position. 

MalMonroe

As purdyoaten2 says, you don't earn enough from both jobs to pay any tax.

When you started self-employment you should have registered with HMRC as self-employed - that way you are able to access all your details on your HMRC online tax account. It's easy to do. 

You can message them from there. 

I registered as self-employed a couple of years ago but as yet haven't earned a bean. (I have a pension though, so not starving). I did send in a tax return the first year but then HMRC advised me that I didn't have to send in any more returns until I earned over the tax threshold. 

If you have paid any tax that you shouldn't have, either they will let you know at the end of the financial year or you can contact them (it's really quick through your online account) and let them know, they will adjust your tax code accordingly and you'll get a refund via your employer's pay. (I know that because at the end of the last two financial years I was taxed a small amount on one of my private pensions when I shouldn't have been. I contacted HMRC immediately and they adjusted my tax code. The tax I overpaid was refunded in each case and I look forward to the end of the next financial year when I'll probably have to do the same again.)

It's really easy to keep an eye on tax matters when you've registered.

[Deleted User]

MalMonroe said:

As purdyoaten2 says, you don't earn enough from both jobs to pay any tax.

When you started self-employment you should have registered with HMRC as self-employed - that way you are able to access all your details on your HMRC online tax account. It's easy to do. 

You can message them from there. 

I registered as self-employed a couple of years ago but as yet haven't earned a bean. (I have a pension though, so not starving). I did send in a tax return the first year but then HMRC advised me that I didn't have to send in any more returns until I earned over the tax threshold. 

If you have paid any tax that you shouldn't have, either they will let you know at the end of the financial year or you can contact them (it's really quick through your online account) and let them know, they will adjust your tax code accordingly and you'll get a refund via your employer's pay. (I know that because at the end of the last two financial years I was taxed a small amount on one of my private pensions when I shouldn't have been. I contacted HMRC immediately and they adjusted my tax code. The tax I overpaid was refunded in each case and I look forward to the end of the next financial year when I'll probably have to do the same again.)

It's really easy to keep an eye on tax matters when you've registered.

Did HMRC really tell you that you did not need to fill in a tax return for the reasons that you state? Then again, it wouldn’t surprise me! Unless I have missed something, self-employed earnings over £1000 must be declared. What if you were to make a loss? I would have some concerns with that advice:

https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return