Change of Tax code Question

demonicangel

I have two jobs, one 4 hours a week in which I earn less then £3k a year and the second in which is about £2k a year.

I got a letter yesterday saying that my tax code has change from 647l to 301l (or very similar to that amount).

I know I will get taxed on one job as its a second one, but didnt htink my tax code would change.

Is this normal or something to worry about?

CLAPTON

you should have two tax codes; one for each job

your tax free allowance is 6475 a year which corresponds to a tax code of 647L
however if you have two relatively low paid jobs then you can get your tax code split between them

so it looks like the 301L is a part code for one job; you need to find out the tax code for the other job.. hopefully that way you will pay no tax on either job

Mikeyorks

demonicangel wrote: »

I know I will get taxed on one job as its a second one ....

It's not necessary for that to happen where the income from both is less than your personal allowance (£6475).

You can ask HMRC to apportion the allowance between the jobs. Are you sure (Code 301 just covers one of the jobs) ..... that's not what's happening and a further code of 346 is en route. The P2 just received - should explain?

jem16

With a 2nd job the tax oce allocated to the 2nd job is normally BR, Basic Rate. However as you are earning below the personal allowance to give you that tax code would see you overpaying tax.

It would therefore be beneficial to split your tax code between the two jobs. They have given you one tax code of 301T ( not the T at the end - I'm not sure if it has that from what you gave). The other tax code for your 2nd job should be 346T. Both of these together give the normal tax code of 647L.

demonicangel

Ive not long started the second jopb and it was BR on my payslip so I am assuming I will get another tax code then.

Thanks

Mikeyorks

The P2 (Coding Notice) you recently received with the 301 code should give some indication as to why £3465 of allowances is currently in limbo?

If you haven't requested the split ...... I wouldn't assume HMRC have initiated it. Whilst they now have a composite record for you with both jobs on it I doubt they're going down the line of reallocating allowances in year - unless requested.

demonicangel

I got a asecond letter today, the same as the first but for my second job so believe that they have split the 647 between both jobs.

Mikeyorks

That was all our assumptions when replying initially? Presumably the new one is 346?

But I think it's intriguing that you've obtained a rational split if you're saying you didn't initiate it? As there is no way - in year - HMRC can guess the remuneration from each job.