What will happen to my tax code if i am employed normally and then go self employed as well?

Question

If I am employed and have Tax Code ABC and I decide to register as self employed - does my tax code with my employee change at all or do I have two seperate tax codes?

Cheers

Ian

Answer 1

No, your code with your employer does not change.

You do not get a code number for your self employment. The tax due is calculated from your self assessment tax return.

Answer 2

Hello,

Your tax code should be and remain as 503L, it should change at the end of the tax year (as normal) to the higher rate.

Unless you want HMRC to take any tax you owe, or repay any tax they owe you; they should not change your tax code. They will however ask you to fill in an annual return if you become self-employed, so ensure you keep your P60 from your job; and all receipts etc... for your business.

Thanks

Answer 3

Get a good accountant who can advise you how to offset as much against your business as possible. Don't forget business expenses such as use of phones, post etc - if you work from home you can even claim for use of your room as an office. This will reduce your net profit and therefore, the tax you pay on your self employed earnings.

Answer 4

unless your G.W. your not going to be changing many tax codes. it is safe to say that you will not file a 1040EZ form either.the first thing you should do is contact an accountant and have a chat. you will probably be itemizing and an accountant will save you much in time and heatache (not to mention cash!!) they are surprisingly cheap. mine runs about 50 dollars a month and that includes payroll for three employees. remember to save enough money to pay your social security taxes. they will be twice as much and youll have to write a check for them. paying quarterlies on time and consistantly also helps.

Answer 5

Buy taxcut for self employed or independant contractor then you can file both ways, don't worry about it.

Answer 6

it is called cash in hand