Restarting part self employed

monaymadlol

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 

Dazed_and_C0nfused

monaymadlol said:

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

Thanks 
Will my tax code change with my employer?
Do i need to inform my employer of new arrangements to do this?
Thanks 

MyRealNameToo

monaymadlol said:

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

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

monaymadlol

MyRealNameToo said:

monaymadlol said:

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. 

Thanks, nothing in my contract and employers are aware and supportive