Emergency tax - Two PAYE incomes
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twisterzzz
Posts: 30 Forumite
in Cutting tax
Experts
Just want to do a sanity check on tax rules please.
- I am currently being made redundant from employer A and signing a severance agreement on 29 May, from that date my employment with Employer A would be terminated, however the severance and any outstanding payments will be made on next payroll [PAYE] run, 26 June 2015.
- I will be joining Employer B from 1st June and would receive my first pay salary [PAYE] paid end of June, on or around 26 June 2015. I have not yet received P45 from Employer A so I presume I would have to fill P46 to provide employer B.
So in essence I would receive two payments [Employer A and Employer B] on 26 June 2015.
My question is, would receiving two incomes from two different sources generate an emergency tax in June ? If so, is there a way to avoid that ?
Just want to do a sanity check on tax rules please.
- I am currently being made redundant from employer A and signing a severance agreement on 29 May, from that date my employment with Employer A would be terminated, however the severance and any outstanding payments will be made on next payroll [PAYE] run, 26 June 2015.
- I will be joining Employer B from 1st June and would receive my first pay salary [PAYE] paid end of June, on or around 26 June 2015. I have not yet received P45 from Employer A so I presume I would have to fill P46 to provide employer B.
So in essence I would receive two payments [Employer A and Employer B] on 26 June 2015.
My question is, would receiving two incomes from two different sources generate an emergency tax in June ? If so, is there a way to avoid that ?
0
Comments
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I would think your new employer will use code 1060L month 1 pending the P45. I don't think you can avoid that
P46 no longer exists - your employer will complete a new employee checklist and submit your details online to HMRC. Not sure what's in the checklist - there's a sample online but you can't get beyond the first page without completing it0 -
Cannot be precise without full details but assuming tax code is not to far off 1060L and higher rate tax not involved.twisterzzz wrote: »
My question is, would receiving two incomes from two different sources generate an emergency tax in June ? If so, is there a way to avoid that ?
If you declare that your new job is your only job but that you have worked before this tax year then your new employer will use the emergency tax code for any payments made before the P45 details are added. If you have payments from your old employer and your new employer which fall in the same tax month then you will under-pay tax and this will be corrected in the first payment you get from the new employer after the P45 details have been added.
If you declare that you have another job you will be taxed at BR (20% on everything) so tax for the double pay month would be about right, but if P45 is delayed you could be overtaxed until it arrives but again would corrected when figures put in. It is possible that you might have to contact HMRC to get the figures added to new employment.0
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