Self assessment q after starting PAYE

monaymadlol

Hi, after many years, I stopped sole trading earlier this year to go to employment PAYE, so this is my first self assessment that captures this.

I have 3 payslips so far, tax code for 1st was 0T one then 1257L. NI taken for all, SLC taken for latest, emergency tax deducted for first and then fully repaid second, and no income tax deducted at all.

I'm due to pay the balancing POA this summer after this return but unsure if I'll take up self employed work - but I'll leave my account open - is that the correct option rather than shut it down and restart?

I also want to clarify things on self assessment which are new for me given the overlap this year please:

1) class 2 NIC - looks like I can select an option to opt out of this given I'm not self employed going forward. Is this a good idea, any pros or cons?

2) There's also a 'did your business cease trading after 5/4 but before 6/4' - I assume i tick yes - so as to not pay/file future self employed tax, future return?

3) overlap relief - not sure what it means

There is a part here that asks about overlap relief:

'sold or closed down your trade/business during the 6 April 2023 to 5 April 2024 tax year, and your basis period for this year does not start on 6 April'

I did 'stop' my self employed work in Jan - haven't officially closed it but, as before, I just want to leave it open - do I click yes or no do you think - for overlap relief or does it not apply here?

4) don't understand this bit:

'Our records show that your 2023 to 2024 PAYE Notice of Coding includes an adjustment for tax underpaid.

Amount of estimated underpaid tax for 6 April 2023 to 5 April 2024 to be included in your PAYE tax code for 6 April 2024 to 5 April 2025 (from your PAYE Notice of Coding):

£ 0.00

Is this figure correct?'

I assume this is correct unless it's asking me to estimate the amount of tax I should have had deducted as PAYE??

5) Then next section:

'Other debts

Amount of outstanding debt included in your tax code for 2023-24. Please enter '0' if there is nothing shown or you did not have a PAYE code:'

Any help is appreciated

T I A

[Deleted User]

1) You cannot opt out of class 2 for 2023/24
2) Yes
3) You have no overlap relief if you always made your books up to 5th April (not including when you ceased)
4) and 5) - assume correct

On the second POA - you can file your return before this is due to determine how much should be paid. 

Not sure what the relevance is of payslips - you do know that you are returning income 6th April 2023 to 5th April 2024 - the P60 will detail the required entries. 

monaymadlol

[Deleted User] said:

1) You cannot opt out of class 2 for 2023/24
2) Yes
3) You have no overlap relief if you always made your books up to 5th April (not including when you ceased)
4) and 5) - assume correct

On the second POA - you can file your return before this is due to determine how much should be paid. 

Not sure what the relevance is of payslips - you do know that you are returning income 6th April 2023 to 5th April 2024 - the P60 will detail the required entries. 

[Deleted User] said:

1) You cannot opt out of class 2 for 2023/24
2) Yes
3) You have no overlap relief if you always made your books up to 5th April (not including when you ceased)
4) and 5) - assume correct

On the second POA - you can file your return before this is due to determine how much should be paid. 

Not sure what the relevance is of payslips - you do know that you are returning income 6th April 2023 to 5th April 2024 - the P60 will detail the required entries. 

Thank you - sorry don't understand your last bit. I don't have a P60 - where & how do I get this and why? I've used info from my online tax account to get my employed earnings to date. I know that no employment tax taken for the for the last few months and that I'll need to have this calculated and deducted.

My payroll said that from April this will be irrelevant and that new earnings will be taxed at source with the new financial year 

monaymadlol

And if I don't work self employed during 24/25 and have nothing to declare in that respect for earnings, is it correct that I don't have to file another return...and where do I effectively tick/state to ensure this? Thanks 

[Deleted User]

monaymadlol said:

[Deleted User] said:

1) You cannot opt out of class 2 for 2023/24
2) Yes
3) You have no overlap relief if you always made your books up to 5th April (not including when you ceased)
4) and 5) - assume correct

On the second POA - you can file your return before this is due to determine how much should be paid. 

Not sure what the relevance is of payslips - you do know that you are returning income 6th April 2023 to 5th April 2024 - the P60 will detail the required entries. 

[Deleted User] said:

1) You cannot opt out of class 2 for 2023/24
2) Yes
3) You have no overlap relief if you always made your books up to 5th April (not including when you ceased)
4) and 5) - assume correct

On the second POA - you can file your return before this is due to determine how much should be paid. 

Not sure what the relevance is of payslips - you do know that you are returning income 6th April 2023 to 5th April 2024 - the P60 will detail the required entries. 

Thank you - sorry don't understand your last bit. I don't have a P60 - where & how do I get this and why? I've used info from my online tax account to get my employed earnings to date. I know that no employment tax taken for the for the last few months and that I'll need to have this calculated and deducted.

My payroll said that from April this will be irrelevant and that new earnings will be taxed at source with the new financial year 

Your employer is obliged to give you a P60 for 2023/24 by 31st May. Given what you have stated I would not be confident of declaring anything other than what is on that. 

monaymadlol

[Deleted User] said:

monaymadlol said:

[Deleted User] said:

1) You cannot opt out of class 2 for 2023/24
2) Yes
3) You have no overlap relief if you always made your books up to 5th April (not including when you ceased)
4) and 5) - assume correct

On the second POA - you can file your return before this is due to determine how much should be paid. 

Not sure what the relevance is of payslips - you do know that you are returning income 6th April 2023 to 5th April 2024 - the P60 will detail the required entries. 

[Deleted User] said:

1) You cannot opt out of class 2 for 2023/24
2) Yes
3) You have no overlap relief if you always made your books up to 5th April (not including when you ceased)
4) and 5) - assume correct

On the second POA - you can file your return before this is due to determine how much should be paid. 

Not sure what the relevance is of payslips - you do know that you are returning income 6th April 2023 to 5th April 2024 - the P60 will detail the required entries. 

Thank you - sorry don't understand your last bit. I don't have a P60 - where & how do I get this and why? I've used info from my online tax account to get my employed earnings to date. I know that no employment tax taken for the for the last few months and that I'll need to have this calculated and deducted.

My payroll said that from April this will be irrelevant and that new earnings will be taxed at source with the new financial year 

Your employer is obliged to give you a P60 for 2023/24 by 31st May. Given what you have stated I would not be confident of declaring anything other than what is on that. 

Ok, I will contact them but I'm not sure what other information I would need on it that I don't already have via my tax account, ie employment earnings to date ie 31/3/24?

Dazed_and_C0nfused

monaymadlol said:

[Deleted User] said:

1) You cannot opt out of class 2 for 2023/24
2) Yes
3) You have no overlap relief if you always made your books up to 5th April (not including when you ceased)
4) and 5) - assume correct

On the second POA - you can file your return before this is due to determine how much should be paid. 

Not sure what the relevance is of payslips - you do know that you are returning income 6th April 2023 to 5th April 2024 - the P60 will detail the required entries. 

[Deleted User] said:

1) You cannot opt out of class 2 for 2023/24
2) Yes
3) You have no overlap relief if you always made your books up to 5th April (not including when you ceased)
4) and 5) - assume correct

On the second POA - you can file your return before this is due to determine how much should be paid. 

Not sure what the relevance is of payslips - you do know that you are returning income 6th April 2023 to 5th April 2024 - the P60 will detail the required entries. 

Thank you - sorry don't understand your last bit. I don't have a P60 - where & how do I get this and why? I've used info from my online tax account to get my employed earnings to date. I know that no employment tax taken for the for the last few months and that I'll need to have this calculated and deducted.

My payroll said that from April this will be irrelevant and that new earnings will be taxed at source with the new financial year 

That isn't how it works.

There is never going to be a calculation relating solely to your employment in 2023-24.  Or to specifically collect any tax due on that source of income.

You will include the taxable employment income on your Self Assessment return, just like any other source of taxable income, and that will form part of your 2023-24 Self Assessment calculation.

Your Self Assessment calculation determines the finalised POA and any Balancing Payment for 2023-24 and the POA (if applicable) for 2024-25.

sheramber

You complete your self assessment return with self employed pages and PAYE pages for your emplyment uopt o 5/04/24.

If you don't want to complete self assessment returns for future years you will need to advise HMRC  that you have ceased.  You can do this on your 23/24 return. 

If you want to leave your  self assessment record open then you will be required to complete a return for 24/25 and if you have no self employment to report it is likely HMRC will close your record if there is no other reason for you  to submit a return.

You can atell HMRC you have ceased trading and if you do some self employed work you can advise them and they will reopoen your self assessment record.

monaymadlol

Dazed_and_C0nfused said:

monaymadlol said:

[Deleted User] said:

1) You cannot opt out of class 2 for 2023/24
2) Yes
3) You have no overlap relief if you always made your books up to 5th April (not including when you ceased)
4) and 5) - assume correct

On the second POA - you can file your return before this is due to determine how much should be paid. 

Not sure what the relevance is of payslips - you do know that you are returning income 6th April 2023 to 5th April 2024 - the P60 will detail the required entries. 

[Deleted User] said:

1) You cannot opt out of class 2 for 2023/24
2) Yes
3) You have no overlap relief if you always made your books up to 5th April (not including when you ceased)
4) and 5) - assume correct

On the second POA - you can file your return before this is due to determine how much should be paid. 

Not sure what the relevance is of payslips - you do know that you are returning income 6th April 2023 to 5th April 2024 - the P60 will detail the required entries. 

Thank you - sorry don't understand your last bit. I don't have a P60 - where & how do I get this and why? I've used info from my online tax account to get my employed earnings to date. I know that no employment tax taken for the for the last few months and that I'll need to have this calculated and deducted.

My payroll said that from April this will be irrelevant and that new earnings will be taxed at source with the new financial year 

That isn't how it works.

There is never going to be a calculation relating solely to your employment in 2023-24.  Or to specifically collect any tax due on that source of income.

You will include the taxable employment income on your Self Assessment return, just like any other source of taxable income, and that will form part of your 2023-24 Self Assessment calculation.

Your Self Assessment calculation determines the finalised POA and any Balancing Payment for 2023-24 and the POA (if applicable) for 2024-25.

Yes I know there isn't a separate calculation, was stating that it will need to be calculated via return