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@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • MC0412
    • By MC0412 5th Jan 18, 3:08 PM
    • 3Posts
    • 0Thanks
    MC0412
    Tax advice needed.
    • #1
    • 5th Jan 18, 3:08 PM
    Tax advice needed. 5th Jan 18 at 3:08 PM
    Hello All

    I've been working at a pub for the past 5 years since i was at college and until recently I've had no really course for concern. However, i started a full time job approximately two years ago but kept the pub on the side as a bit of extra income. I've now received a tax bill of £500 for my earnings from the pub over 16/17, is this right? or should the pub have been making the deductions from the pay for me? I've never received a pay slip from them nor a end of year P60? I'm a tad confused about the whole situation if im honest so any advice would be really helpful!

    Thankyou
Page 1
    • ACG
    • By ACG 5th Jan 18, 3:16 PM
    • 16,128 Posts
    • 8,308 Thanks
    ACG
    • #2
    • 5th Jan 18, 3:16 PM
    • #2
    • 5th Jan 18, 3:16 PM
    Im going to struggle to explain what I think the problem is in writing but I will give it a try...

    You get a tax free allowance of around £11k every year. I am guessing your income at the pub was less than £11k.

    So when you started the new job, you paid tax based on that income alone, the tax man has eventually realised you have had 2 jobs and effectively not paid tax on the first £11k of the new job (which is fine) and also not paid tax on the first £11k of the old job (or however much you did earn at the old job).

    We used to own a pub and there was a girl who worked for us that had 3 jobs, this cropped up with her.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • MC0412
    • By MC0412 5th Jan 18, 3:34 PM
    • 3 Posts
    • 0 Thanks
    MC0412
    • #3
    • 5th Jan 18, 3:34 PM
    • #3
    • 5th Jan 18, 3:34 PM
    I get what you're saying ACG and confirms what I was thinking, as far as the pub were concerned i wasn't earning over the £11K threshold and therefore they didn't have to deduct tax??

    In regards to payslips and the P60 surely i should have received these during my employment there?
    • agrinnall
    • By agrinnall 5th Jan 18, 4:24 PM
    • 19,202 Posts
    • 14,862 Thanks
    agrinnall
    • #4
    • 5th Jan 18, 4:24 PM
    • #4
    • 5th Jan 18, 4:24 PM
    I think it would help if you tell us how much you were earning (weekly/monthly, however you were paid) in the pub job, so that we can decide whether they should have been paying employer's NI and deducting employee's NI from your gross pay, which would have been reflected in payslips and P60.
    • MC0412
    • By MC0412 5th Jan 18, 4:26 PM
    • 3 Posts
    • 0 Thanks
    MC0412
    • #5
    • 5th Jan 18, 4:26 PM
    • #5
    • 5th Jan 18, 4:26 PM
    Agrinnall - my earnings from the pub for that tax year where £3500 or there abouts, added to my other earns took me to £13,500 for that year, £2500 over the threshold.
    • ACG
    • By ACG 5th Jan 18, 6:22 PM
    • 16,128 Posts
    • 8,308 Thanks
    ACG
    • #6
    • 5th Jan 18, 6:22 PM
    • #6
    • 5th Jan 18, 6:22 PM
    Both jobs will have been down as your first/main job.
    When you started at the pub, it would have been correct. When you started the new job it would have been correct. HMRC have about 10 different computer systems and so it does sometimes take time for things to catch up - I remember getting 2 letters for them a day apart, one was an invoice and the other a cheque for an overpayment.

    The only way you will know if it is correct is to check what you earnt each tax year against the tax tables for that year, but chances are it will be right.

    The pub should have given you P60s and payslips yes.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • agrinnall
    • By agrinnall 5th Jan 18, 8:55 PM
    • 19,202 Posts
    • 14,862 Thanks
    agrinnall
    • #7
    • 5th Jan 18, 8:55 PM
    • #7
    • 5th Jan 18, 8:55 PM
    Agrinnall - my earnings from the pub for that tax year where £3500 or there abouts, added to my other earns took me to £13,500 for that year, £2500 over the threshold.
    Originally posted by MC0412
    Please answer the question that I asked, your total earnings from the pub job are not what we need to know.
    • Dazed and confused
    • By Dazed and confused 6th Jan 18, 10:09 AM
    • 2,094 Posts
    • 945 Thanks
    Dazed and confused
    • #8
    • 6th Jan 18, 10:09 AM
    • #8
    • 6th Jan 18, 10:09 AM
    No but for 2016:17 if the total income was £13,500 and the tax owed is £500 then it seems reasonably clear that no tax was deducted at either job.

    13500 - 11000 = 2500 x 20% = £500

    Op may be best advised to ensure he gets the correct tax codes sorted now to minimise the tax bill that's no doubt building up for the current year.
    • jobbingmusician
    • By jobbingmusician 6th Jan 18, 10:24 PM
    • 18,914 Posts
    • 19,263 Thanks
    jobbingmusician
    • #9
    • 6th Jan 18, 10:24 PM
    • #9
    • 6th Jan 18, 10:24 PM
    If you contact HMRC you may well be able to have this tax reclaimed by an adjustment in your tax code for the new tax year. I do understand that if you're a student, £500 sounds like a nightmare. Just over £40 a month is a lot more palatable though, no?
    I'm the Board Guide on the Matched Betting; Referrers and Jobseeking & Training boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there. Board guides are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.

    The good folk of the matched betting board are now (I hope!) supporting Macmillan, in memory of Fifigrace. Visit
    https://www.gofundme.com/running-the-leeds-10k-for-macmillan
    • vegasvisitor
    • By vegasvisitor 7th Jan 18, 10:59 AM
    • 2,143 Posts
    • 1,384 Thanks
    vegasvisitor
    Tax
    Agrinnall - my earnings from the pub for that tax year where £3500 or there abouts, added to my other earns took me to £13,500 for that year, £2500 over the threshold.
    Originally posted by MC0412
    So, your main job was £10k, and not taxable. Then you had £3500 earnings. As someone else said, £13,500 less £11k personal allowance - £2500. 20% of this is your £500.

    You must have been aware that the pub were paying you without deducting tax though. You are obliged to tell them you have other employment for them to be able to deduct the tax. Otherwise they continued to assume they're your main employer.
    • chrisbur
    • By chrisbur 7th Jan 18, 12:27 PM
    • 2,822 Posts
    • 1,523 Thanks
    chrisbur
    What should have happened is that both employers on commencement should have asked the following and the OP should have picked A B C or non of them.

    "A This is my first job since last 6 April and I have not been receiving taxable Jobseeker’s
    Allowance, Employment and Support Allowance, taxable Incapacity Benefit,
    State or Occupational Pension.
    B This is now my only job but since last 6 April I have had another job, or received taxable
    Jobseeker’s Allowance, Employment and Support Allowance or taxable Incapacity Benefit.
    I do not receive a State or Occupational Pension.
    C As well as my new job, I have another job or receive a State or Occupational Pension."

    When starting the second job option C should have been selected and tax would have been deducted at basic rate. The OP could have then arranged a better split of the tax allowance with HMRC.
    • agrinnall
    • By agrinnall 7th Jan 18, 1:39 PM
    • 19,202 Posts
    • 14,862 Thanks
    agrinnall
    The tax is going to be pretty easy to sort out, but what might be trickier is NI, but as the OP has declined to answer the question I have now asked twice we have no idea if NI was payable. I'm out because I'm not willing to waste any more of my time, but if the OP ever does reply maybe someone else will explain whether NI should have been paid.
    • PrettyKittyKat
    • By PrettyKittyKat 7th Jan 18, 2:28 PM
    • 159 Posts
    • 259 Thanks
    PrettyKittyKat
    The tax is going to be pretty easy to sort out, but what might be trickier is NI, but as the OP has declined to answer the question I have now asked twice we have no idea if NI was payable. I'm out because I'm not willing to waste any more of my time, but if the OP ever does reply maybe someone else will explain whether NI should have been paid.
    Originally posted by agrinnall
    Why do you need to know the weekly/monthly figure as opposed to the yearly figure for the pub? Just querying as I always check my NI based on what I earn over a year not just a week or month.
    • PrettyKittyKat
    • By PrettyKittyKat 7th Jan 18, 2:30 PM
    • 159 Posts
    • 259 Thanks
    PrettyKittyKat
    It sounds as thought the tax codes weren't updated in time so both of your jobs had your tax code as though they were your only job, this can often happen when you change jobs or have more than one job. HMRC should adjust your tax code to account for the money due.

    When I worked in a pub the landlady would be given the payslips each time she went to a head office meeting and then would pop them in a box. It was up to us to seek out our payslips. Whereas all other jobs I have been in (retail, office) we were given our payslip in a much more formal manner. I suspect the pub had payslips for you but the landlord jut didn't give them for you. If you think you did pay tax and want to check give them a call and request them. After this amount of time they will have to be duplicated so this could take some time.
    • anamenottaken
    • By anamenottaken 7th Jan 18, 2:51 PM
    • 4,004 Posts
    • 3,494 Thanks
    anamenottaken
    Why do you need to know the weekly/monthly figure as opposed to the yearly figure for the pub? Just querying as I always check my NI based on what I earn over a year not just a week or month.
    Originally posted by PrettyKittyKat
    Do you think that NI for an employee is on an annual basis?
    • PrettyKittyKat
    • By PrettyKittyKat 7th Jan 18, 5:47 PM
    • 159 Posts
    • 259 Thanks
    PrettyKittyKat
    Do you think that NI for an employee is on an annual basis?
    Originally posted by anamenottaken
    In a previous employment we always looked at the figure for what the personal had earned in the year, subtracted the allowance, then worked out the appropriate % to check that their NI was right. The same process as what we did for tax. This was how senior management told us to do it so I had no reason to think otherwise. I am guessing from your response that NI calculations are therefore done on a weekly/monthly basis and your annual income doesn't matter.
    • agrinnall
    • By agrinnall 7th Jan 18, 6:01 PM
    • 19,202 Posts
    • 14,862 Thanks
    agrinnall
    In a previous employment we always looked at the figure for what the personal had earned in the year, subtracted the allowance, then worked out the appropriate % to check that their NI was right. The same process as what we did for tax. This was how senior management told us to do it so I had no reason to think otherwise.
    Originally posted by PrettyKittyKat
    That works if their pay in each pay period is always between the Primary Threshold and the Upper Earnings Limit (for employees NI, similar limits for Employers NI) but not if the pay is ever below or above that range. In the OPs case it's quite possible that they earned below the PT in some pay periods, in which case no NI would be due for that pay.

    "A little knowledge is a dangerous thing" - possibly based on Alexander Pope in An Essay on Criticism (1709).
Welcome to our new Forum!

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

Forum Team Contact us

Live Stats

3,084Posts Today

10,050Users online

Martin's Twitter