📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Restarting part self employed

Options
monaymadlol
monaymadlol Posts: 454 Forumite
Fifth Anniversary 100 Posts Name Dropper
Hi
I went employed 18 months ago after 15 years self employed.  
Submitted my last sole trader tax return last January,  no submissions since paid off outstanding balances of what I owed (which worked out more than I thought)

Im looking to commence hybrid employed and self employed,  but only doing 2-4 days a month self employed. 

Is there anything I need to be made aware of?

Should it all be straightforward or will hmrc mess something up with taxation? Or smooth sailing? 

I assume it will work out what I've already paid in tax when it comes to submission and not overtax me, only taxing my sole trader earnings?

I'm sure I asked hmrc to close my sole trader account so will this all need to be set up again? I used my own name. 

Thank you 

Comments

  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 17,606 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    Hi
    I went employed 18 months ago after 15 years self employed.  
    Submitted my last sole trader tax return last January,  no submissions since paid off outstanding balances of what I owed (which worked out more than I thought)

    Im looking to commence hybrid employed and self employed,  but only doing 2-4 days a month self employed. 

    Is there anything I need to be made aware of?

    Should it all be straightforward or will hmrc mess something up with taxation? Or smooth sailing? 

    I assume it will work out what I've already paid in tax when it comes to submission and not overtax me, only taxing my sole trader earnings?

    I'm sure I asked hmrc to close my sole trader account so will this all need to be set up again? I used my own name. 

    Thank you 
    It doesn't work like that.

    When you file your Self Assessment return you need to include details of all your taxable income.  And any tax deducted at source.

    Your income tax liability will be calculated on all of your income, so the employment income will be be taxed within that calculation.  But at the end of the calculation you will get credit for the PAYE tax that was deducted (assuming you remember to include it on the return).

    You need to register as self employed with HMRC.  And register for Self Assessment.
  • monaymadlol
    monaymadlol Posts: 454 Forumite
    Fifth Anniversary 100 Posts Name Dropper
    Thanks 
    Will my tax code change with my employer?
    Do i need to inform my employer of new arrangements to do this?
    Thanks 
  • MyRealNameToo
    MyRealNameToo Posts: 243 Forumite
    100 Posts Name Dropper
    Thanks 
    Will my tax code change with my employer?
    Do i need to inform my employer of new arrangements to do this?
    Thanks 
    Tax code may or may not change, HMRC will advise your employers if it does but doesn't tell them why.

    You need to read your contract of employment, many will require you to have permission from them to have a second job which they may decline if its working for a competitor etc. There can also be a broader requirement of declaring any conflicts of interest which again freelancing for a competitor may create. 

    If your contract nor company policies require such declarations then its up to you if you tell them or not. 
  • LITRG
    LITRG Posts: 82 Organisation Representative
    Eighth Anniversary 10 Posts Name Dropper Photogenic

    Hi
    We have information about registering for self-employment on our website: Self-employment: registering for tax and NIC | Low Incomes Tax Reform Group . We explain that if you need to re-register as self-employed for self assessment, your old Unique Taxpayer Reference (UTR) should be re-activated by HMRC once you do this. You may also find our self-employment guide helpful: Self-employment: a guide | Low Incomes Tax Reform Group


    Official Company Representative
    I am an official representative of LITRG (Low Incomes Tax Reform Group) part of the Chartered Institute of Taxation who are an educational charity. We are not part of MSE or HMRC. MSE has given permission for me to post on the Forum but this does NOT imply any form of approval of my organisation or its products by MSE. We can’t give individual advice, but if you require further help, we recommend that you contact a tax adviser, HMRC or one of the tax charities where relevant. You can find more information about where to get help with tax here. If you believe I am posting inappropriately please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.6K Spending & Discounts
  • 244.1K Work, Benefits & Business
  • 599K Mortgages, Homes & Bills
  • 177K Life & Family
  • 257.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.