Starting new full time job after self employment and part time job.

[mattbrod39]

Hi, I have a question regarding starting a new job and was hoping for some advice. I start my new full time job next week. For the past 4 years I have run my own freelance business for which I have completed my self assessment return and submitted to HMRC as well as paying tax owed as directed by accountant. As well as running my freelance business I was working part time in a hospitality business to supplement my income.

I don't want my new employer to know I was working in the hospitality job as they may view this negatively. I will have a p45 from this job of course but don't want to submit to my new employer for the reasons explained. I know my current tax code from this employment.

My question is what information can I supply the new employer with for payroll purposes without disclosing the fact that I was working in the hospitality business. I'd like to avoid emergency tax if possible. Am I right in thinking the 'Starter Check List' is the best solution and if so how do i answer the Employee statement part of the form with the above details in mind.

Many thanks in advance for any advice.

 

[Newchodge]

Tick box B on the starter checklist. You will be on emergency tax, though. The only way to avoid emergency tax, legally, is to use your P45. If you tick box A you would not be on emergency tax, but you would have lied.

How big is the new employer? Most just pass the P45 to payroll and don't look at the name of the old employer.

 

[mattbrod39]

Hi Cyndy

Many thanks for this. My new employer is a company of just ten people so one person deals with all admin as well as other duties. So if I tick Box B and go on emergency tax how long typically does the additional tax take to be reimbursed? Am I right in assuming that I could say I was an employee in a similar business for a time hence my Box B answer? (If asked the question of course) If I did this they still wont have visibility of the hospitality business I worked for as HMRC cant disclose this information?

Many thanks again.

 

[Newchodge]

HMRC will only ever tell your employer what tax code to use.

You may get a permanent tax code issued within a couple of weeks of your first pay date, but it is very near the end of the tax year, so you may have to wait until you complete your SA and get your refund then.

 

[SteveHa]

To add (and perhaps offer a little more comfort), your employer is required to make a submission to HMRC each and every time you are paid. The first submission will include details of you starting in employment.

This submission should trigger a tax code issue from HMRC, although in the absence of any employment history, they may elect not to, which would be to your benefit.

Your 2019 Tax Return will still include details of your final period of self-employment. Depending on the level of income received from the part time job you may still have some tax-free allowance available to mitigate tax arising from your Tax Return, and so reduce the amount you have to pay via self-assessment.

 

[mattbrod39]

Thanks Cyndy really appreciate this and your helpful advice.

So if I do have to wait until I complete my SA for the past year to get the correct Tax code and refund I assume I'd need to submit this ASAP post 5 April or risk delaying the refund?

Many thanks also SteLacca for your excellent advice, really great.

My main concern is not disclosing the fact that I worked in a different business sector rather than waiting for any tax refund if put on emergency tax. This is only because the industry sector and full time role I'm moving to (The same one as my freelance business - Design) is very different from hospitality and as I said may be viewed negatively by the new employer which is why I didnt disclose this information during the interviews process.

Thanks to you both.