Taxed incoorectlybut complicated and don't know how to remedy it!

Hello all, thanks in advance for your help and what a great resource.

I recently began a temp job and recieved a payslip with too much tax taken off. I was given the code BR which i understand is for those with a second job or a pension. This means i recieve absoluetly no allowance at all and all my income is charged at the basic rate.

This is where it gets complicated. When i registered I filled out a P46 and answered C to the question regarding employment status. This is because since March this year i have been working on Sundays at a bike shop. I get paid £50 for the day cash in hand from the till. Meanwhile since March to October this year i recieved Hosuing Benefit as I did not have enough income to support myself. Knwoing this wasn't right i dug out my old P45 and handed that in to the payroll at my workplace, this didn't help.

My problem now is that I recieve no tax allowance despite the fact that my other job pays only £50 and is thus way below the threshold and my new job is being taxed at 20% on all the earnings plus national insurance!

What can i do to make sure i recieve the allowance i am entitled to? There is no tax history on the cash in hand job BUT it was declared for my housing benefit and i'd rather not commit fraud with the HMRC. However i recieve no payslips for my PT job and would like to quit soon but cannot afford to if i am being taxed so much! What can i do to remedy this situation?

Thank you so much all i want to do is pay the right amount of tax and get the allowance i am entitled to!

Comments

  • fengirl_2
    fengirl_2 Posts: 4,530 Forumite
    You need to contact the tax office which deals with the temp job and explain that, although you have another job, its only £50pw. They will then issue a tax code with your personal allowance - 6475, less wages from the Sunday job (£50 x 52) £2600 = 3875 or code 387L for the temp job. The temp employer will then refund the tax overpaid.
    The fact that yoou are paid in cash at the Sunday job is nothing to worry about - its way below the tax threshold and the employer is not doing anything wrong.
    £705,000 raised by client groups in the past 18 mths :beer:
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350K Banking & Borrowing
  • 252.7K Reduce Debt & Boost Income
  • 453.1K Spending & Discounts
  • 243K Work, Benefits & Business
  • 619.8K Mortgages, Homes & Bills
  • 176.4K Life & Family
  • 255.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.