P46 Form Help

fgh001

I started a part time job today and was asked to fill in a P46 form.(The job is less than 16hrs a week) On the form there is a section called 'your present circumstances' where you have to tick the correct box for your circumstances. I am unsure whether i have ticked the correct one now. I have been claiming job seekers allowance, but whilst claiming also have another part time job (2hrs a week) which i still plan to keep doing along with my new part time job and for this reason i ticked box 'C'. Should i have ticked box 'C' even though its only 2hrs per week and dont get taxed on it? What will happen now?
hopefully someone can help me!
thanks

NikkiLou_2

Sounds like you have clicked the correct box, if anything is wrong the tax office will contact you, or if you see something wrong first then contact them and they will sort it.

I did that an got a rebate for what they owed me.

fgh001

thanks for your reply,
i have read that you have a 'personal tax allowance' of £6,475 per year? How does this work with 2 jobs that dont reach this amount per year, will i still not pay any tax on my 2 jobs? or is it different beacuse i have more than 1 job?
thanks.

NikkiLou_2

No, I used to have students working for me in the summer that also had weekend bar jobs and they never had to pay tax as long as they didn't make over a certain amount.

Savvy_Sue

it will all get sorted out in the end, however are you likely to earn more than £6470 in this tax year?

Could be worth phoning your local HMRC office, you want to make sure that your tax allowance is applied to the job with the highest salary. Then if there's any left over, you might get some of it applied to the other job.

fgh001

Savvy_Sue wrote: »

it will all get sorted out in the end, however are you likely to earn more than £6470 in this tax year?
.

Hi, no at the moment i wont be earning more than £6470 so i wont pay anything?

Victoriajayne

By ticking box C, your new employer will now tax you at rate BR - basic rate of 20% on all earnings - until the tax office tell them otherwise (if they ever do !)
Best to speak to the tax office that deals with your new employer - tell them you now have 2 jobs, that one is only '2 hours a week at this rate per hour', and the second is 'however many hours at that rate per hour' ... they should be able to split your tax code so you will end up paying no tax on either job if your total earnings is less than £6475.

fgh001

Victoriajayne wrote: »

By ticking box C, your new employer will now tax you at rate BR - basic rate of 20% on all earnings - until the tax office tell them otherwise (if they ever do !)
Best to speak to the tax office that deals with your new employer - tell them you now have 2 jobs, that one is only '2 hours a week at this rate per hour', and the second is 'however many hours at that rate per hour' ... they should be able to split your tax code so you will end up paying no tax on either job if your total earnings is less than £6475.

With my 2 part time jobs combined i will be earning under the £6475 per year , but even so your saying i will get taxed because i have 2 jobs? im a bit confused

Victoriajayne

Ok, it works like this.
Inland Revenue assign all of your annual tax allowance to your first job... after all, they don't have a crystal ball so they don't know how much you're going to earn from that employer during the rest of the tax year.
So, you've told the second employer that you already have another job by ticking box C. They are now obliged to tax you at basic rate of 20% on all of your earnings, unless they hear otherwise from Inland Revenue.

And the only way Inland Revenue are going to tell them otherwise is if you inform IR of the situation.

So, for example ...
You ring IR and tell them that you only earn £20 a week in job no.1, and that you will be earning £100 a week in job no.2.
They will then split your tax allowance and assign it to your two jobs in proportion to your wages. e.g. they may assign £1050 to job no.1 and the remainder of £5425 to job no.2. They will write to you and both of your employers, informing you of how its been assigned.
In both jobs, you will earn less than the assigned amount ... so won't get taxed in either job.
But if you don't tell them ... you'll get taxed by the second employer, at 20% on your entire earnings from them.
You'll get it all back at the end of the tax year when IR finally work out that you're due a tax rebate.

So it's definitely in your best interests to ring the tax office and ask them - as no-one else is going to !

Savvy_Sue

Vj's post is correct in all respects, except that these days it's HMRC not IR.

This page will help you find your local office.

Victoriajayne

Just found this page while looking for something else ... expalins a little about having more than one tax coding notice.

http://www.hmrc.gov.uk/incometax/check-multiple-codes.htm