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Redundancy and PILON received - followed by self employment but then.....

abbieno7_2
Posts: 108 Forumite


Hi all
Sorry if this is a rambling post but hopefully it will make sense! I am wondering if anyone can give me any guidance at all please, or from anyone who has experienced this before.
I was made redundant in April 2022 and received a tax free redundancy payment and three months PILON, on which I paid £4k tax as HR said it was assumed by HMRC that for this current tax year, I would be earning that every month (presumably charged at the higher rate bracket).
In May, I embarked on a self employed route as a freelance assessor/IQA/Tutor. With this being my intention for the foreseeable, I claimed my tax back via a P50 form and received this.
Two of the companies I freelance for are now moving across to zero hours contracts for casual staff, which will mean tax is paid via PAYE. Does anyone know how this will work for me, as for some organisations I will still be classed as freelance (self employed) and for these two for tax purposes, I would be employed. What will the tax implications be (particularly for the current year, given I have claimed a tax rebate not knowing that this was going to happen). I haven't yet signed any new contracts with these two organisations, as need to check on the implications
Thank you to anyone in advance
Net
Sorry if this is a rambling post but hopefully it will make sense! I am wondering if anyone can give me any guidance at all please, or from anyone who has experienced this before.
I was made redundant in April 2022 and received a tax free redundancy payment and three months PILON, on which I paid £4k tax as HR said it was assumed by HMRC that for this current tax year, I would be earning that every month (presumably charged at the higher rate bracket).
In May, I embarked on a self employed route as a freelance assessor/IQA/Tutor. With this being my intention for the foreseeable, I claimed my tax back via a P50 form and received this.
Two of the companies I freelance for are now moving across to zero hours contracts for casual staff, which will mean tax is paid via PAYE. Does anyone know how this will work for me, as for some organisations I will still be classed as freelance (self employed) and for these two for tax purposes, I would be employed. What will the tax implications be (particularly for the current year, given I have claimed a tax rebate not knowing that this was going to happen). I haven't yet signed any new contracts with these two organisations, as need to check on the implications
Thank you to anyone in advance
Net
0
Comments
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Ultimately you will pay the tax due on your total taxable income so until you know that you can't be certain of the tax which will be due under PAYE for the rest of this tax year.
It will all come out in the wash via your 2022:23 Self Assessment return. On which you must declare the refund you received following the P50 refund claim.
You will need to complete new starter declarations with the two PAYE jobs, you should sign statement B for whichever you consider your main one and statement C for the other.
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