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Posted Thu, 20 Jul 2023 22:04:18 GMT by 1980
Hello and good morning, I've been self-employed for the last 3 years, however this year I returned to being a PAYE employer as well. 1 - Can I continue to have my self-employed account open even if I don't make money? I am asking this because I'm having less time now as I'm a PAYE employer too. However, this can change and I don't want to close my self-employed account. 2 - I sent my Self Assessment return for 2022/2023 in May 2023 but on my PAYE/personal tax account shows a " Non coded income " which is exactly the income from my self assessment. On " Your estimated PAYE income tax," that amount is included in my PAYE as a Total estimated income, so I understand that my self-employment income is being taxed as a PAYE too. I updated the info to the " Non coded income" be removed (still in progress). But my question is, shouldn't each income be taxed separately or is It a cumulative tax ? Thank you for your time.
Posted Thu, 27 Jul 2023 14:04:36 GMT by HMRC Admin 5

Yes.  You are free to continue working as self employed and have paid employment.  
You will still need to complete a self assessment tax return every year.  If you submit a paper tax return (SA100), you would inlcude SA102 (employment) and SA103 (self employment).  
If you submit online, then you would choose yes to employment and self employment.  
The tax payable on your self employment profit, is being collected automatically through your employment, rather than through self assessment.  
When you submit your tax return, including employment and self employment, both will be added together and a liability worked out.  
Ideally, the tax deducted by your employer would be equal to the liability self assessment calculates and no more tax is due.  
By including the deduction for self employment in your tax code, it allows you to pay the tax over the year, rather than in full at the end of the tax year or through payments on account.  
The choice to keep the deduction or remove it from your tax code is yours to make.

Thank you

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