Hi
hoping someone may know the answer, a friend of a friend has asked me a question about their PAYE which has flummoxed me a little (don't have that much experience with payroll).
They were employed part of the year and PAYE on a cumulative basis (had a tax code 860L as has element to travel benefit) they then changed jobs (he said start own practice -I think he works in NHS) he had a change of tax code and was told to self cert on P35 on w1/m1 basis. He thought that they had to be kept separate p60 for cumulative and p35 for non. I was under impression that no matter how PAYE was taken, the whole income is used to calc the final tax due. Am going to tell him to speak directly with HMRC as I cannot really help without full details. But for my own curiosity, hoping someone on here knows the answer?
Thanks
Lyndsey
Yes Lyndsey, total income from employment goes on the P60. There is no such thing as 'self cert on P35', I think whoever told him that probably was suggesting he needed to complete a P46 and give this to his new employers in order to get a tax code (which would be 1000l month 1 basis if he ticked statement 'B'). HMRC would look to issue a correct tax code once all information has been received. Did he not receive a P45 from previous employer? If he is starting his own practice this suggests he would be self employed in which case no PAYE is involved or perhaps he has set up a company and he is being employed by this, in which case the P46 or P45 should be used.
