HELP switched from PAYE in dec 23 to Self employed.

Shellypeb

Hello,

Long story short brand new to being self employed and im fairly clueless currently - i was PAYE for over 10 years with a company until redundacy on 8th december 2023. Went self employed beginning of january and registered on gov gateway and have UTR etc

A few things im confused about:

- For my 23 assesment because i've paid tax via PAYE up until december am i only declaring from jan 1st to april 1st 2024?

- do i need to tell hmrc i was employed for the majority of 2023 and already payed tax?

- will i only pay tax for jan 24 - april 24 or will they base my bill on the entire year of earnings?

- my earnings in jan 24 - april 24 are well under the personal allowance... What happens in that scenario?

Any help and advice would be great thank you!

DullGreyGuy

When you do your self assessment you will need to complete both the self employment and employee sections, you'll take the numbers off your P45 for the later inc what taxes you've already paid. 

Your tax for the year is based on your total earnings not just self employment, if your employee + self employment is below your personal allowance then there will be nothing to pay. 

[Deleted User]

Shellypeb said:

Hello,

Long story short brand new to being self employed and im fairly clueless currently - i was PAYE for over 10 years with a company until redundacy on 8th december 2023. Went self employed beginning of january and registered on gov gateway and have UTR etc

A few things im confused about:

- For my 23 assesment because i've paid tax via PAYE up until december am i only declaring from jan 1st to april 1st 2024?

- do i need to tell hmrc i was employed for the majority of 2023 and already payed tax?

- will i only pay tax for jan 24 - april 24 or will they base my bill on the entire year of earnings?

- my earnings in jan 24 - april 24 are well under the personal allowance... What happens in that scenario?

Any help and advice would be great thank you!

You self-assess all of your income for 2023/24. You declare earnings from both self-employment and employment including tax deducted. 

Your liability will be calculated and full credit for tax paid at your employment will be made. 

Any tax due must be paid by 31st January 2025.