Invoice paid as PAYE

One of my clients insists on paying me PAYE, even though they make me invoice them (it’s annoying, don’t get me started!)

Obviously if I mark the invoice as paid it won’t tally up to the actual amount which hits my bank account. Any suggestions for how I can deal with these?

If they’re paying you on PAYE as a employee and you are a Sole Trader, then this would not be counted as part of your self-employment income.

The client (employer) should provide you with a P60 by 31 May for the previous fiscal year, this information then needs to be entered, under employment income, on your Individual Self Assessment Tax Return for each year.

You should also credit note the invoice and issue time sheets or similar to the client, if they’re paying you through PAYE system as an employee.