Few operational questions about going PAYE...

[peterc2609]

Haven't really got an option, bills need paying.

However, hoping to get back to contracting ASAP.

So I'm going from outside IR35 to PAYE.

Few questions:

1. P45 - Should I get one and pass to PAYE agency, or should I just say BR Tax code? I've been recommended to not give P45 if I want to go back to contracting within the year? Whats the pros and cons?

2. Extend year end by 6 months - whats the benefit of this? If Any?

3. Reduce SA on account to Zero - is it worth doing this?

Grateful for any advice.

Thanks

[Lance]

1. P45 - Should I get one and pass to PAYE agency, or should I just say BR Tax code? I've been recommended to not give P45 if I want to go back to contracting within the year? Whats the pros and cons?

Who recommended that? I'd get a P45 so your PAYE is done correctly.

2. Extend year end by 6 months - whats the benefit of this? If Any?

I can't think of any. You'll have more paperwork not less.

3. Reduce SA on account to Zero - is it worth doing this?

yes but it's probably too late as you will have already paid half your POA last month.

[ladymuck]

1. Issue yourself a proper P45 so you don't overpay tax and have to claim it back. If you decide to go back to contracting, you will be issued with a P45 and you can use that in your own payroll going forward. Check with your accountant whether you will need to close down your PAYE scheme and start it up again, or whether you can just issue nil returns. The latter may be better if you truly think you'll be back sooner than later.

2. I can't see what benefit you'd gain from that.

3. Yes, do this.

[GhostofTarbera]

I heard of one contractor starting a £100K+ permie job recently that almost got fired for handing in a P45 that said he was only paid £5K so far this year HR could not get there head round dividends and thought he was lying on his cv about previous role


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