New job needing tax info

[mol122]

Hi I’ve recently got a new job as an estate agent. My previous job I was a sold transfer for a company and down as self employed. As part of my application process with doing my contract I had to fill in all of my previous jobs. I put down that I was self employed and the person I wa self employed for but now they have come back and asked for proof of my taxes which I haven’t got. Any advice would they decline me the job over this I am really worried as I was really looking forward to starting my new job. I’ve told them I can’t give them my contract and other information from the person I was self employed for but waiting to hear back.

Log into HMRC and download a copy of your self assessment and sent that to them? I would assume that’s what they mean. Even if you don’t earn enough to pay tax you should have been doing tax returns. (That’s what I understand - I find it all really fucking confusing and difficult!)

i haven’t done my self assessment for this year yet as it needs to be done by April

But a previous year would do wouldn’t it?

I guess I’d just ask new employer to clarify what form of proof they would like.

Yeah give them an estimate you need to sort out with hmrc so you don't get emergency taxed

I wasn’t self employed for long enough it’s only been this tax year which I haven’t done yet as it’s not due till April

I don’t understand why they need evidence of your taxes! That feels like an invasion of privacy and none of their business. Ask them for the HMRC new starter form (was called p46) as that will allow them to pay you correctly assuming you are now going to be PAYE.

That’s what I thought! I gave them all the information and details to get a reference off the person I was sole trading for! They said in order to go further in my contract they need either my taxes for the year or proof of my self employment which I haven’t got

Proof of self employment is tricker but I still don’t get why. You’ve given them a referee for the period of time you were self employed so that is all they need if they are concerned about gaps in employment? I wonder what they would do if you said you don’t feel comfortable sharing your tax information. I’d never show somebody my tax return, it has all sorts of personal info on there like savings interest and gift aid. I wonder if you are dealing with somebody who doesn’t know why they need it but has been told to get it from you?!

You can download the "new starter form" from the HMRC website, complete it and hand it to the new employee. That's all they need. You tick the relevant box to say you've previously had a job but this is now your only job and the new employee will allocate the emergency tax code on a week 1 basis. Even if you told your new employer your earnings etc., they're not allowed to make up a tax code for you. There are rules linked to the new starter form and once HMRC know you're employed there (when the new employer submit your first payroll run), they'll issue a PAYE code. So, just complete and hand in the "new starter form" - they don't need and can't use anything else.

@ThirdStorm

I wonder if you are dealing with somebody who doesn’t know why they need it but has been told to get it from you?!

Nail on the head. They've not got a clue what they want and almost certainly don't understand self employment taxation and self assessment. They're probably expecting some kind of substitute P45 from you showing your s/e earnings and s/e tax paid, which simply doesn't exist and is something you can't provide.

Just give them a new starter checklist. They should easily be able to google what to do with it!

You could give them your UTR number - it's evidence that you were self employed but won't give them any access to anything.

Do you think they would be happy with a contract or invoices from the company I was sole trading for ?

Yes just give them your UTR number.

If you were ‘only sole trading for’ (as you put it) one company, there is a risk it should have been treated as employment rather than self employment. Just a heads up.

They can;t use the UTR number as it can't go into the PAYE system they use. Nor is it "proof" of self employment. Lots of people have UTR and complete SA returns for other purposes, such as complicated affairs, capital gains, foreign income, buy to let property, large amounts of interest and/or dividends etc. The new employer can't do anything with a UTR number and it means nothing. They need a P45 (impossible for self employed) or the employee to complete the HMRC's new starter checklist. Nothing else can be used.

Being self employed, you would have been paying your own NI contributions. Is this information not available via .Gov Gateway?

Yes, definitely.

True but the burden is on the "employer" to get it right, not the worker, so as long as the worker (OP) declares the income as self employed income on her tax return, should HMRC open an enquiry and challenge it, it's her "employer" who'll get the bill for unpaid payroll deductions such as employers NIC etc and the employer would then also become liable for paid holidays and other employment rights.