Self employed and new job - tax code
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IMZ83
Posts: 4 Newbie
in Cutting tax
Hi Everyone
my current situation is :
Self employed now for 6 years
just been employed from june , my self employment profit use to be over 7000 each year
now going to be down as i am concentrating on my job
The thing is we get paid every 2 week, and on my first wage slip i could see tax code 1185L
and can see properly deduction of income tax and Nat ins.
Called Hmrc 3 week before to tell them about that ( update regarding my tax credits)
that i am still continuing my self employment and started a new job by giving them by weekly gross income, so i can be given the right amount of tax credits.
now got my 2 snd wage slip , i can see a refund of tax income, its exactly the same amount i paid tax the on the 1st wage slip wich was 117£, so on my second wage slip that amont of 117£ has been refunded and my tax code is still the same.
I am new to tall that tax code can someone explain me that? is that normal?
thank you
my current situation is :
Self employed now for 6 years
just been employed from june , my self employment profit use to be over 7000 each year
now going to be down as i am concentrating on my job
The thing is we get paid every 2 week, and on my first wage slip i could see tax code 1185L
and can see properly deduction of income tax and Nat ins.
Called Hmrc 3 week before to tell them about that ( update regarding my tax credits)
that i am still continuing my self employment and started a new job by giving them by weekly gross income, so i can be given the right amount of tax credits.
now got my 2 snd wage slip , i can see a refund of tax income, its exactly the same amount i paid tax the on the 1st wage slip wich was 117£, so on my second wage slip that amont of 117£ has been refunded and my tax code is still the same.
I am new to tall that tax code can someone explain me that? is that normal?
thank you
0
Comments
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a little addup
can this be because i got this job half way through the year? so my income won't reach the 118500 taxable gross income the reason i won't be taxed on the PAYE income?0 -
a little addup
can this be because i got this job half way through the year? so my income won't reach the 118500 taxable gross income the reason i won't be taxed on the PAYE income?
Close but not quite. Your first payment would have been on a non-cumulative tax code which means you were given an allowance of 2/52 of your yearly allowance comes out at about £456. This has then been changed to a cumulative tax code so you get the part of the years tax allowance due as at that point in the year, check your payslip for the week number take 11859 divide by 52 and multiply by the week number that is your tax free allowance at this point in the year. Tax code may be the same but the basis has changed usually shown on your payslip after the code, may just be the difference of a 1 changed to a 0.
If continuing as self employed you do need to bear in mind that your job is using up some possibly all of your tax free allowance so when you come to your self assessment more tax will probably be due so do not spend it all.
I think you had an extra 0 on your figure for tax allowance and we are not half way through the tax year that starts on 6 April, so about a quarter into the tax year.0 -
hi Chrisbur first of all thanks for your reply highliy appreciated
yes i can see my first wage slip had the tax basis 1, and now the 2nd wage slip has the tax basis 0, which i understand from your post i am on the cumulative tax code.
Just a last question, so if i understand correclty, i did a table on excel with number of weeks, and for each weeks the cumulative projection of tax allowance reaching at each week
same on the other side a projection of taxable cumulated gross income reached each week
if i am right then, i from that table i can see my gross income will go beyond my tax allowances figure on end january, means i will be having tax deduction on my wages from end onf january?
thanks a lot0 -
hi Chrisbur first of all thanks for your reply highliy appreciated
yes i can see my first wage slip had the tax basis 1, and now the 2nd wage slip has the tax basis 0, which i understand from your post i am on the cumulative tax code.
Just a last question, so if i understand correclty, i did a table on excel with number of weeks, and for each weeks the cumulative projection of tax allowance reaching at each week
same on the other side a projection of taxable cumulated gross income reached each week
if i am right then, i from that table i can see my gross income will go beyond my tax allowances figure on end january, means i will be having tax deduction on my wages from end onf january?
thanks a lot
Yes that is correct. Each pay period of two weeks will see your tax free allowance increase by about £456 so your salary will be increasing faster than that and will catch up with it. At that point you will start to pay tax. The first payday will probably be a reduced figure of tax but from then on tax will be 20% of your taxable gross figure less the £456 tax free allowance,give or take a few pence.0 -
thanks to you highlight appreciated i learned a new thing
:T0
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