Previously self employed and unsure how to fill out P46 (UK taxes)

Question

Up until now I have been self-employed this tax year. I am now being employed full time and won't be receiving any other income. I have to fill out a "P46: Employee without a Form P45" (or just known as P46) and one of the questions is confusing and I'm unsure how to answer:

Your present circumstances:

A) This is my first job since last 6 April and I have not been receiving taxable Incapacity Benefit or a state or occupational pension.

B) This is now my only job but since last 6 April I have had another job, or have received taxable Jobseeker's Allowance or Incapacity Benefit. I do not receive a state or occupational pension.

C) I have another job or receive a state or occupational pension.

I am unsure if I should tick option A or B. Does self-employed income count as a job?

Answer 1

The intention of the form is to identify whether or not they should give you the benefit of the tax allowance so far this tax year - in case A, it would have been completely unused, so they can allocate it to your new earnings. In case B it might have been taken up by your previous job or other income.

So I think you should choose B, even though self-employment isn't explicitly mentioned - the effect will have been the same. In the end you'll probably need to reconcile your tax at the end of the year by filling in a tax return.

If you really need some extra take-home pay now and you tick box A, you'll probably end up being under-taxed, and having to pay it back at the end of the tax year. It might just about be justifiable since your self-employment income isn't explicitly mentioned under box B.