HMRC New Starter Checklist - Employee statement

[BringBackCatsEyes]

Can anyone give me some advice on how to complete this section, it's confusing to me.

I think the section is missing from your post OP - if you added a screenshot it might be pending review

No, it's all in the title - I need help with the Employment section of the form.

Which letter to select?

If you have not received any other income this financial year, so you haven’t been employed, in receipt of any pension, or the named benefits since 6th April 2025 then select A.

If you have had another job (which you are no longer employed at) since 6th April 2025, or you have recorded the named benefits since 6th April 2025, then select B.

If you are currently employed with another job, and will remain employed at that job when you start your new one, or you are in receipt of any pension, then select C.

Thanks. Yes.

I was earning as self-employed until mid Sept. That has ended. Tick B
I now have another freelance job. Tick C.

I am due to start a new PAYE job early Jan and this form is part of my onboarding.

I understand I should only tick A, B or C but both B and C seem true to me.

Select B, then you’ll get all of your tax free allowance in your PAYE job.

When you submit your self assessment you should include your income from your PAYE job and your freelance work, and the tax paid from PAYE.

Thank you.
If B is correct, that means C isn't. But I DO have another job (the freelance work). This is what I don't understand.

The freelance work is self employed, not PAYE, yes? So you won’t be paying any tax until you submit your self assessment.

When employers run payroll they submit everyone’s pay and tax information to HMRC. HMRC systems check that the tax being paid is correct, and if it isn’t then it will trigger a P6 notification with updated tax details.

If you select C then your tax code will be BR, or basic rate, which means you will have no tax free pay. However HMRC most likely won’t see your freelance work and issue a new tax code for you via a P6.

It means (assuming you earn more than £12,570 per annum) all your tax free allowance will be used in your PAYE job.

You’ll need to submit a self assessment and then it will all even out.

As I understand it the questions relate to employment and imply PAYE.

B should mean your tax free allowance is applied to the new job starting in Jan. Assuming the previous employer completed a P45 then your 'free pay' will correctly reflect what you've paid already.

If there's a mix up over where/how free pay is allocated HMRC are pretty good at sorting it out.

My free pay is used against an occupational pension and my employed earnings are BR. One employer, processing a TUPE transfer, erroneously allocated my free pay to earnings.

A call to payroll and HMRC sorted it out.

Thank you @PinkFrogss, I am glad there are people who understand this stuff....cos I hate it all!

I don't have a P45 (I had a contact with a Hong Kong company).
I do have an accountant and he has reassured me that any issues can be sorted out. I've got it in my head that if I tick the wrong statement it might get me in trouble, but it's more that it might not all get sorted out until my self-assessment is completed.

@BringBackCatsEyes if you tick the wrong box by mistake you won't get in trouble; that only happens if you do it to get an outcome you're not entitled to.

With an on line HMRC account it's pretty easy to track what's where.

I wouldn’t worry too much OP, you wouldn’t get in trouble. Starter checklists are designed to be a blunt tool, and in most cases they won’t be accurate due to not having much information on them (which is why a P45 is preferred where possible). HMRC won’t blink an eye, they’ll just issue a P6 and not give it another thought if it’s wrong.

At work we have lots of people who don’t enter their SL information accurately so have a month or two without repaying, then we get a notification from HMRC to start deducting student loan. I’ve never heard of anyone getting in trouble for that and that’s probably the most obvious way of trying to get out of paying what you should on a starter statement!

Thank you.
Contract signed and I start 6th Jan!
The tax will sort itself out in due course.