Tax codes for 2 employments?

I have a friend who has a primary and secondary employment where both have the tax code of something like 489L ie the personal allowance. She has worked at the primary employment for some years but only for the last 2 years at the secondary employment. She has completed forms given to her by her newer employer but was given the personal allowance tax code rather than BR which I believe she should have been given. She pays through PAYE and doesn't fill in a tax form.

My understanding is that the newer employer is ultimately liable for the uncollected tax. She has done everything in good faith and is worried about paying back tax for last year. This error has only been found as a result of assessing her financial position. She is of limited means and in receipt of WTC etc. What would her position be as we can be sure the proverbial will hit the fan shortly as she's changing employment soon.

Reply to
Fred
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Reply to
DoobieDo

She'll have to pay the extra tax but the HMR&E are quite reasonable and would give time to pay. In one recent example they allowed two years - but don't expect them to allow that long without some effort on the taxpayer's part.

Reply to
Peter Saxton

"Fred" wrote

When she started the 2nd job, presumably she had no P45 to give to the newer employer, so she should have completed a P46 form instead. Is this the case here?

If so, did she tick any of the boxes for any of the following three statements? :-

" - This is my first regular job since leaving full-time education. I have not claimed Jobseekers Allowance, or income support paid because of unemployment since then."

" - This is my only or main job."

" - I receive a pension as well as the income from this job."

Reply to
Tim

It's worth a try but most people don't remember.

Reply to
Peter Saxton

I will ask and report back. She's very confident that her new employer knew about her first one and indeed hours had to be worked out between the two.

My understanding is that any forms she was given were filled out appropriately to reflect her circumstances.

Many thanks for the replies.

Reply to
Fred

Thanks - I live and learn. I was unaware of the group.

Reply to
Fred

equally she has a responsibility to submit a tax return if she thinks she has any liability.

Phil

Reply to
Phil Thompson

It is possible that the underpayment may be waived, if the employer did not operate PAYE properly or the IR made an error with her Code.

Reply to
Doug Ramage

Each employer had the opportunity to invite the employee to complete the P46 and each could believe that they have been declared as the main or only employment.

They would then operate emergency tax and then follow in subsequent years with cumulative codes.

Ultimately, we are all responsible for ensuring that we each pay the correct amount of tax and or NI. I think Doug is guilty of a bit of wishful thinking, I know it happens, but you usually have to show error on the part of IR/HMRC or, if it comes up at an EC review, if the employer was at fault then the unpaid tax would be pursued from them.

Depending on amounts, it is likely that underpayment will be fairly small and will often be recovered by coding adjustment. Does Fred intend to enlighten the group on the amounts in question, the advice might then be more specific.

Simon

Reply to
Simon

Many thanks for the replies of help.

The anticipated amount is the 10% + 22% on the personal allowance, an estimate would be around 850 by my reckoning.

Reply to
Fred

It is also dead, and due to be buried shortly. This is the best place to ask these questions.

Please ignore our resident troll.

Reply to
Jonathan Bryce

budget 2003 ? napster ? bomb iraq ?

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hehehehehe

Reply to
DoobieDo

Simon, IIRC, there have been several cases where the Adjudicator has found in favour of the taxpayer where the IR and/or employer have made errors in Coding Notices.

Reply to
Doug Ramage

Yes, and in those cases, the taxpayer will have been honest and have provided all the relevant info at the right time. In those cases, it was the departments fault and quite rightly forgone the right to pursue the underpayment. Seems right to me.

In the majority of cases, that is just what people do but my job means that I meet very few of them, I spend my days actively trying to find those who are less than honest or actually try to find ways to pay less than is legally due.

It tends to make one a bit cynical.

Reply to
Simon

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