Self employed and employed help

[Mrs Malapup]

I am about to become employed (part time) as well keeping my business going....Im not earning enough to pay tax in my business yet but I dont want to get stung for emergency tax when I start my part time employed work. I dont have a P45 or P60 so is there anything I should be doing to make sure I get taxed correctly. My accountant has not answered my last two emails (as usual) and I cant get through to the revenue.......any pearls of wisdom anyone please :rolleyes:

[jholden]

Your part-time employer will complete a P46 for you and operate a basic rate code, this is automatic.

If I was in your shoes, I would try to contact the Revenue who deal with your self employed income and request they reallocate all your personal allowance against this new employment.

They will probably not be able to do this until the P46 is sent in.

Jason

[taxattack]

Complete a form P46 which your new employer should provide, ticking box A. Tax will be deducted at basic rate, with full personal allowance.

Your tax code will be BR, and it's called emergency rate, but is really the same as a standard tax code.

Chris

[elainec100@cheapaccounting]

You can download and print a P46 here ready to take in on you first day:

http://www.hmrc.gov.uk/forms/p46.pdf

[primeaccounts]

Is your present business a limited company or sole trader. If you are a sole trader then you will be able to tick box A on the P46 that you will have to fill in (as you dont have a P45) so you wont get stuck on a BR code. Then you will just be paying tax on your sole trader business profits in the normal way as you presently do.

If however your business is a Limited Company and you are drawing a salary from it (in many directors cases they just draw a salary to make use of personal allowance and for NI purposes etc) then you will be ticking box C which then means you will have a basic rate tax code. If you are only drawing a salary to make use of the personal allowance and your new part time job is more than say £6000 per annum it may be worth no longer taking a salary from your limited company and taking a dividend instead from their.

Hope thats of some help!

Wayne

[Mrs Malapup]

Thanks everyone....I have a P46 but I had ticked box C....will make sure I tick A now....cheers :)