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Level 1

Was made redundant and started self employed in the same year. What about the tax?

Last year I was employed and was paying PAYE tax. I was then made redundant and started as self employed. Do i need to take in to account my PAYE earning when working out my Tax return?

1 REPLY 1
QuickBooks Team

Was made redundant and started self employed in the same year. What about the tax?

Yes, you need to take into account your PAYE earnings when working out your tax return in QuickBooks Self-Employed (QBSE), @Rob1973. Let me provide further details about this.

 

You can add your PAYE earnings through the Estimated employment income field in the Tax profile section. With this, you're able to have a reference when filing SA103F to the HMRC. However, before doing so, I'd recommend consulting your accountant or tax adviser. This way, you'll be guided on accounting your PAYE earnings along with your self-employed taxes.

 

Once ready, here's how:

  1. Go to the Gear icon.
  2. Select Tax profile under Taxes.
  3. Go to the Estimated employment income field and enter your PAYE earnings.
  4. Click Save.

 

I've attached screenshots below for your reference.

 

Your self-employment taxes are calculated based on your business income, spending, allowable expenses, and the information you have set up in your tax profile. You can learn more about this by checking out this article: QuickBooks Self-Employed UK Tax Profile Set Up.

 

Additionally, here are some of the HMRC articles that'll further guide you about self-employment taxes:

  • Employment status. Includes topics about employment rights and how to check if you're exempt from PAYE to name a few.
  • Expenses if you're self-employed. It contains examples and information about costs you can claim as allowable expenses and capital allowances.

 

Please know that you're always welcome to comment below if you have other concerns or follow-up inquiries about handling tax returns in QBSE. I'm just round to help. Take care.