Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • sva14
    • By sva14 24th Oct 06, 2:46 PM
    • 121Posts
    • 1Thanks
    sva14
    2 jobs - tax and tax code question?
    • #1
    • 24th Oct 06, 2:46 PM
    2 jobs - tax and tax code question? 24th Oct 06 at 2:46 PM
    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
Page 1
  • moonrakerz
    • #2
    • 24th Oct 06, 3:11 PM
    • #2
    • 24th Oct 06, 3:11 PM
    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%.
    • weaver
    • By weaver 24th Oct 06, 3:11 PM
    • 1,427 Posts
    • 8,810 Thanks
    weaver
    • #3
    • 24th Oct 06, 3:11 PM
    • #3
    • 24th Oct 06, 3:11 PM
    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
  • notmyrealusername
    • #4
    • 24th Oct 06, 3:14 PM
    • #4
    • 24th Oct 06, 3:14 PM
    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%.
  • Girl least likely to
    • #5
    • 24th Oct 06, 3:29 PM
    • #5
    • 24th Oct 06, 3:29 PM
    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%.
    by notmyrealusername
    I'm in the same boat. On the upside, when I became pregnant I received 2 lots of maternity pay
    • jem16
    • By jem16 24th Oct 06, 5:21 PM
    • 18,363 Posts
    • 11,023 Thanks
    jem16
    • #6
    • 24th Oct 06, 5:21 PM
    • #6
    • 24th Oct 06, 5:21 PM
    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%.
    by notmyrealusername
    BR is 22% not 25%.
    • steady__eddie
    • By steady__eddie 24th Oct 06, 5:48 PM
    • 1,437 Posts
    • 526 Thanks
    steady__eddie
    • #7
    • 24th Oct 06, 5:48 PM
    • #7
    • 24th Oct 06, 5:48 PM
    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.
    • jem16
    • By jem16 24th Oct 06, 5:53 PM
    • 18,363 Posts
    • 11,023 Thanks
    jem16
    • #8
    • 24th Oct 06, 5:53 PM
    • #8
    • 24th Oct 06, 5:53 PM
    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.
    • steady__eddie
    • By steady__eddie 24th Oct 06, 8:32 PM
    • 1,437 Posts
    • 526 Thanks
    steady__eddie
    • #9
    • 24th Oct 06, 8:32 PM
    • #9
    • 24th Oct 06, 8:32 PM
    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 !
    • jem16
    • By jem16 24th Oct 06, 8:40 PM
    • 18,363 Posts
    • 11,023 Thanks
    jem16
    Yes I would try that first. In my son's case it was the same tax office for both jobs.
  • ctm
    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 !
    by steady__eddie
    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.
    • capehorn
    • By capehorn 25th Oct 06, 3:56 PM
    • 947 Posts
    • 342 Thanks
    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.
    • jem16
    • By jem16 25th Oct 06, 4:55 PM
    • 18,363 Posts
    • 11,023 Thanks
    jem16
    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.
    • sarahlouise210
    • By sarahlouise210 25th Oct 06, 6:16 PM
    • 3,163 Posts
    • 3,614 Thanks
    sarahlouise210
    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.
    by capehorn
    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
    • bootman
    • By bootman 26th Oct 06, 1:29 PM
    • 1,969 Posts
    • 1,343 Thanks
    bootman
    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.
    • jem16
    • By jem16 26th Oct 06, 4:22 PM
    • 18,363 Posts
    • 11,023 Thanks
    jem16
    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.
    • oldwiring
    • By oldwiring 26th Oct 06, 7:45 PM
    • 2,183 Posts
    • 441 Thanks
    oldwiring
    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.
    • sva14
    • By sva14 13th Jan 07, 11:17 AM
    • 121 Posts
    • 1 Thanks
    sva14
    Thanks For The Replies
  • Lauren Withers
    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?
  • tigtag02
    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.
    HTH
    tt
    baby no3 due 16th November
    TEAM YELLOW
    DFD 16/6/10
    "Shut your gob! Or I'll come round your houses and stamp on all your toys" The ONE, the ONLY, the LEGENDARY Gene Hunt
Welcome to our new Forum!

Our aim's to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

570Posts Today

4,870Users online

Martin's Twitter