Refund of overpaid tax

[paddy26]

Hi,

A friend of mine has recently left employment in a well paid job and is setting up on his own. He will have minimal income from the new employment from Oct - Dec this year.

Is it appropriate for him to use the form P50 to reclaim the overpaid tax and then do a tax return to reconcile everything (levy etc) in Jan 2010?

 

[Domo]

No, he should register as self-employed, and complete his tax return at the end of the year

 

[paddy26]

Thanks for the reply. Does this apply even though he will be a Proprietary Direcotr of a company?

 

[Domo]

If he is receiving payment from the Limited Company that he is a director of, he will have to operate payroll there, and will get his tax credits that way, so he can't reclaim from the Revenue as he will be employed.