Advice Please - Second Job and Income Tax

My husband is a part-time cleaner - he works for a cleaning agency who have contracts with various companies, and generally earns less than £5000/year and so pays no tax. Recently the agency he works for lost a contract to a rival company, and so he is employed by the rival company for one job. he filled in a new employee application as was given to him, and was told that no P45 was needed. On the form, he was asked if he had a second job to which he answered yes Since being paid, not only is he paying tax on his income £53/week, but he is paying it at basic rate. He has tried to get this sorted but has just been told to get in touch with his tax office - not sure what good that would do.

What usually happens when people have second jobs which is what this is now? How can the second company know whether to deduct tax from the wage or not? Do we really have to wait until next April and then claim it all back? Also, if he gets extra work with one of the companies which takes him slightly over the tax allowance, how is that dealt with with two employers involved?

Basic questions, but never had to deal with this situation before!

Thanks for your advice..

Reply to
Maria
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Normally you get a separate PAYE code for each job. One of your jobs is deemed your primary employment and you get your personal allowance on it. Other jobs are then taxed at the basic rate (BR) - currently 22%.

Alec

Reply to
Alec

So he's probably been given a tax code of BR. The tax code will be on the payslip.

That's right - the tax office tell the employer what code to use, so you need to contact them. The number may be on the payslip or you can look it up here (if there's a tax ref on the payslip use this in the form below):

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No, you should be able to get it back as soon as the tax code is sorted.

One of the jobs will have a proper tax code (like 522L). This means no tax is paid until income from that job gets to 5229, then you get the

10% band, then basic rate etc.

The other job can only guess how much you earn in the first job, so will have a code which starts taxing you in a particular band, eg BR will tax all the income at basic rate, NT will tax none of it (this is code he wants).

This can't get the tax right in all cases - if he ends up earning

4000 in the first job and 2000 in the second, then he'll either owe tax (if he had a code of NT in the second job), or he'll owe tax (if he had a code of BR).

See

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(ignore "pensioners" in the URL, it applies to younger people too).

Reply to
Andy Pandy

"Andy Pandy" wrote

Teehee - can't get away from being taxed, eh?! :-(

Except you made a typo - second one should be "he'll be owed tax back" rather than "he'll owe tax"!

Reply to
Tim

Thanks for your help. The tax office have said they are going to 'spilt' his tax code between the two jobs (one gets 300, the other I presume 225). I guess that will do the trick?

Reply to
Maria

No, once he goes over £3009 or £2259 in one of the jobs he will get tax deducted.

Peter

Reply to
PeterSaxton

Well, it will work just if the balancing job of the jobs doesn't increase much. I assume the tax office has worked it out correctly.

One job needs 275 and the other job needs up to 224.

Peter

Reply to
PeterSaxton

Ok...but as long as he still works for both companies earning at least what he earns now, that is correct yes? A problem would presumably arise should one employment terminate and then he would have to quickly get his code readjusted by the tax office.

This split code was the tax offices idea - is there a better idea and could we ask them to apply our solution instead?

Reply to
Maria

Maria

Sorry. It does just work as long as HMRC have allocated the codes to the correct employer. I suppose it's a question of seeing if any changes result in tax deductions and then phoning HMRC and asking them to adjust the split of the tax codes between employers.

The tax code split is the best.

Peter

Reply to
PeterSaxton

Ok, thanks for all your help! We'll keep an eye on it...

Reply to
Maria

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