Adam Gale
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Self Employment and PAYE Employment - Tax Deduction Questions
Hi there, I hope you are well. I'm currently a self employed graphic designer and also an employee for a local newsagent/convenience store. At the end of each tax year I usually send both my self employed earnings/spreadsheets to my accountant, along with my employment payslips. He calculates how much tax to pay and I pay it through the HMRC portal. When this current tax year started, my employer started deducting tax directly from my PAYE wages - using the tax code 1257L. I emailed their HR department but they said that they cannot change anything, and I would need to contact HMRC. This is strange, because the same event happened last year (23-24 tax year), but after a few months, the employer refunded me the tax I had paid - and I set it aside for when I speak with my accountant. But this year, they continue to deduct tax. Please could someone explain why this happens? I would still prefer to deal with my accountant and pay tax through the HMRC portal after my self assessment, instead of directly through PAYE. What could I do about it? Thanks!