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2 jobs - tax and tax code question?
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# 1
sva14
Old 24-10-2006, 2:46 PM
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Default 2 jobs - tax and tax code question?

Hi,

My friend has been doing 2 jobs (Main one and supermarket Part time) last finacial year. The main job is work 40 hrs and the tax code was 474L and looking at the P60 everything looks ok right amount of tax and NI deducted.

However the supermarket job the tax code on the P60 and payslips has always been "BR" the emergency code , thus I believe that the HMRC always deducted 22% tax off the pay each month.

My question is :- Is This the correct, that the 2nd supermarket job tax code will always be BR and she will always have to pay the full tax on that income?

Could she right to HMRC to look to see if the correct tax has been deduced etc?

thanks
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# 2
moonrakerz
Old 24-10-2006, 3:11 PM
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I think that is the usual way the tax man does it, to keep it simple, for both parties.
Your main income, usually the largest one, is the one all your allowances and deductions is put against. Any other income is then just taxed at the appropriate rate, 22% or 40%.
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# 3
weaver
Old 24-10-2006, 3:11 PM
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Hi

If you have 2 jobs one of them will be rated with a tax code i.e 474L which this year has changed to 503L. The second job will be "BR" basic rate.

so the codes applied are correct.

BR is not the emergency code,this year that is 503L wk 1/month1

It is always best to have the job you get paid the most at your correct tax code i.e 503L and the lower paid one at BR this way you are not paying 22% on your main income with no deductions.

Hope this helps
Thanks to everyone who posts comps
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# 4
notmyrealusername
Old 24-10-2006, 3:14 PM
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It's correct I'm afraid, my main full time job is taxed at 22% and my part time job (8 hrs a week) is taxed at BR, 25%.
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# 5
Girl least likely to
Old 24-10-2006, 3:29 PM
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Quote:
Originally Posted by notmyrealusername
It's correct I'm afraid, my main full time job is taxed at 22% and my part time job (8 hrs a week) is taxed at BR, 25%.
I'm in the same boat. On the upside, when I became pregnant I received 2 lots of maternity pay
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# 6
jem16
Old 24-10-2006, 5:21 PM
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Quote:
Originally Posted by notmyrealusername
It's correct I'm afraid, my main full time job is taxed at 22% and my part time job (8 hrs a week) is taxed at BR, 25%.
BR is 22% not 25%.
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# 7
steady__eddie
Old 24-10-2006, 5:48 PM
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The current Mrs. steady_eddie has now given up after several attempts to get full time employment and instead has resorted to two part time jobs.
The gross total of the sum of both jobs is just a smidgeon under her allowances (now that she claims for cleaning her working clothes) in normal circumstances. Could someone confirm please if both jobs will be "tax free" or only one of them and she'll be BR d on the other with the option of claiming a refund at the end of the tax year ?
Anticipatory thanks.
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# 8
jem16
Old 24-10-2006, 5:53 PM
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If you do nothing she will have her tax code applied to the 1st job and BR applied to the 2nd job. This would leave her having to apply for a refund at the end of the tax year.

However if you contact your tax office they will be able to adjust both codes accordingly. They have done this for my son to avoid overpaying tax each year.
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# 9
steady__eddie
Old 24-10-2006, 8:32 PM
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Thank you so much for that info. When you say contact the tax office, I presume that you mean the tax office i.r.o. the second job ? I think that this will be the preferred option in order to avert severe cashflow probs !
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# 10
jem16
Old 24-10-2006, 8:40 PM
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Yes I would try that first. In my son's case it was the same tax office for both jobs.
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# 11
ctm
Old 24-10-2006, 8:45 PM
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Quote:
Originally Posted by steady__eddie
Thank you so much for that info. When you say contact the tax office, I presume that you mean the tax office i.r.o. the second job ? I think that this will be the preferred option in order to avert severe cashflow probs !
Actually, no!

The way the tax system works is that the job with all the allowances is treated as the main source of income. The job being taxed at BR is the sub source of income. Each record may be held in different tax offices.

The tax office which holds the main record is the one responsible for deciding the codes. They then provide instructions to the office holding the sub record.

So, to get the allowances split you need to contact the office that holds the main record.
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# 12
capehorn
Old 25-10-2006, 3:56 PM
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Out of curiousity, if you have two part time jobs, one earning 4K per year and another earning 3K per year, would you be taxed 25% on the second one?? I thought the £5030 annual allowance protected against that.
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# 13
jem16
Old 25-10-2006, 4:55 PM
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Yes you will be taxed on the 2nd job at 22% not 25% unless you try to sort it out with the tax office. Otherwise you have to claim a refund at the end of the tax year.
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# 14
sarahlouise210
Old 25-10-2006, 6:16 PM
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Quote:
Originally Posted by capehorn
Out of curiousity, if you have two part time jobs, one earning 4K per year and another earning 3K per year, would you be taxed 25% on the second one?? I thought the 5030 annual allowance protected against that.
You would need to contact your main tax office (the one dealing with the 4000 job) let them know you have 2 jobs and how much you earn at each. They will keep 4000 of your tax free allowances to set against you main job ..the remainig 1035 can be set against the 2nd job
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# 15
bootman
Old 26-10-2006, 1:29 PM
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I have tried to get my tax codes split but the main tax office wont do it. I have recently started a 2nd part time job, this one will be my main one earning £7k a year. The other £2k.

They have sent me finally a new coding notice for job 1 today of 585T and saying job 2 which is with another tax office will be BR.

They say I get the £5035 + 822 so I get the benefit of the 10% rate. I really dont understand the coding notice.

I have already paid over £200 in tax as it has taken them 4 weeks to issue a notice.
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# 16
jem16
Old 26-10-2006, 4:22 PM
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Your personal allowance is 5035 - this is tax-free. The next band is 10% for the first 2150 of your taxable income. This means that if you earn at least 7185 in your first job, anything after that is taxed at 22% which is the basic rate. Normally a 2nd job is taxed at BR which is basic rate, 22%.

Your code of 585T means that you have 5850 of tax-free allowance - probably to make up for that part of your 10% allowance that you are not using on your 1st job. BR then is correct for your 2nd job.
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# 17
oldwiring
Old 26-10-2006, 7:45 PM
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To adjust for the unused 10% band that would have been used on job #2. if the system had allowed it, the coding on job #1 has to be amended. As the difference in tax rates is 12% (22-10) the unused part of the band is divieded by 0.12 and that amount is added to the basic allowance given on job #1.
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# 18
sva14
Old 13-01-2007, 11:17 AM
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Thanks For The Replies
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# 19
Lauren Withers
Old 22-01-2008, 5:51 PM
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Default 2 part time jobs...

Hi, i have a part time job in a supermarket where i earn just below the threshold for being taxed (about 86 pounds a week). i have recently got a new part time job where i will be earning about 60 pounds week on top of this. i rang the tax office and told them and they said i need to get a P46 off of my new manager, but when i asked him he said they will tax me at emergency tax on my new job, not my old job, and i dont need to send off a form as this new job isnt my main job. sorry if this is a bit confusing, just not sure what i should do and what tax code i should be on for both jobs? could someone please tell me?
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# 20
tigtag02
Old 22-01-2008, 6:23 PM
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If you are below the threashold on both jobs you are better having your tax code split which only that tax office can do.
However, they need to know that you work there first.
Fill out a P46 at your second job and tick box C (This is not my only job).
This will put you on a BR (not emergency) tax code.
Leave it a week or so and then contact HMRC to discuss splitting your code.
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