Tax codes-same job but overtime on BR code

Scousebird_2

I work for the NHS but one thing annoys me and I wish HMRC would review this. I have my permenent job in a hospital trust and I do 37hrs a week there. If I want to do any overtime on the same department or any other department in the hospital, I have to go on the Nursing Bank (which I am also registered with but it is still the same employer). The nursing bank and the permenent nursing payroll are on two different systems and therefore our pay is not amalgamated. Therefore, my Nursing bank is tax is emergency tax rate.

I feel this is unfair because it is exactly the same job-just overtime as opposed to a second job. The mere fact that it is on two different systems with two payroll numbers is the problem. Now surely HMRC can see that something as big as the NHS aint trying to pull as fast one and they can allow a special code to let us do overtime on our normal coding, and have that work over the 12months on PAYE. Or at least rebate us in our permenent pay, what we have overpaid on the BR of our bank pay if you follow me. Does anyone know who I put this to or if there is something I can ask HMRC to make things better?

Many thanks in advance xx
Scousebird

CLAPTON

If you were paid overtime in the normal way you would pay 20% tax on the overtime... exactly the same as BR ..
so you have neither gained nor lost in terms of taxation

however, you haven't said what the NI situation is... you are probably better off because of the way that works...


so you have no problem at all.

MickBee

I wonder whether you need to worry; if your earnings in your main job are more than your tax allowance (and I think they would be if you are a nurse), all extra earnings are taxed at the base rate - which is what the "emergency code" or BR is. If you were to be given the same tax code for both sets of pay, you would be getting twice the allowance you are entitled to?

trevormax

I can see what you mean, but HMRC are not resposable for the NHS payrol having two different references (never seen this before to be honest). In your case, it makes no difference as you use all of your personal allowance on your permenent job anyway. If I were you, I would be more concerned about going over the basic rate threshold resulting in you not paying enough tax. This will happen if you earned more than £40,835 in 08-09 and will earn more than £43,873 in 09-10 (for both perm and overtime combined)

If you know someone who doesn't earn enough in their permenent job to use all of their personal allowance, they can contact HMRC and ask them to set any unused allowances against their overtime reference thus avoiding any overpayment of tax.