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Topic starter
10/01/2011 3:30 pm
Hey Guys
This one's for a tax expert.
While I was getting myself into a financial mess, I was self-employed. Howvever, all tax due was included in my TD.
I'm now employed (not self employed) and paying TAX by PAYE which in itself makes my finances much easier to manage. I should have done it years ago, anyway...
I'm wondering about my tax allowances in this financial year. They were all used up before my TD was signed when I was self-employed.
So what happens now that I have signed a TD and included all tax owed in my TD? Do my allowances for this tax year stay "used up" or do they revert back to the full amount for the remainder of this year?
I suspect I know the answer but thought I would ask.
Thanks (again)!
Cheers,
DebtFreeWannabee
10/01/2011 3:34 pm
Hello DFW.
A good question, and I'm no tax expert! I do suspect however that the taxman will consider that you have already used the allowances and will factor this into your tax coding.
Hopefully Mark, Kevin or Julie will have dealt with a similar situation in the past and will be able to advise accordingly.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
10/01/2011 4:25 pm
Hello DFW
I'm certainly no tax expert, but I spoke to one in our tax department and this is what she told me.
If the personal allowances were all used in calculating the tax due on self employment, which you should be able to check via paperwork lodged by HMRC with the claim, then you will not have any personal allowances to use against your employment income until 6 April 2011. HMRC frequently get tax codes wrong, especially where there are different sources of income, but you shouldnÔÇÖt be getting any further allowances.
Hopefully this answers your query.
Julie
Julie is not currently posting in the Trust-Deed.co.uk forum.
Topic starter
10/01/2011 8:18 pm
Thanks for getting back to me TDA and Julie.
Julie, that's what I thought. At least it's only a couple of paydays until they start over!
Thanks again.
Cheers,
DebtFreeWannabee
