underpaid tax with 2 employers

ruthie117

hi there

i have just received my notice! apparently i have underpaid both 2008/09 and 2009/10.

my situation is a bit complicated in that i had 2 differrent jobs in the NHS for most of this period, the total hours for these 2 jobs was equivalent to a full time NHS post and while they were 2 different NHS trusts they both used the same payroll service, which meant the same payroll issued me with 2 separate payslips.

in january 2010 i received a PAYE coding notice to say that my tax code for 2010/11 would be BR.

what i am wondering is wether my payroll service didn't put me on the correct code to begin with and given that my code was altered (and sadly i didnt know then the Tax system was so error ridden!) whether this means that HMRC failed to place me on the correct tax code earlier.

any thoughts?

Gertie_Walker

Yes, one of the jobs should have been taxed at basic rate (as is now happening). Unfortunately, its your job to point this out to HMRC, hence the underpayment now.

jem16

ruthie117 wrote: »

which meant the same payroll issued me with 2 separate payslips.

You should have had a separate tax code for each payslip - what were these codes?

ruthie117

my tax code was 647L CUMUL on both payslips

it only changed in April this year to BR

jem16

ruthie117 wrote: »

my tax code was 647L CUMUL on both payslips

Which is why you have underpaid. You have been getting your personal allowance twice.

Unfortunately it is your job to check that your tax codes were correct and to have informed HMRC that you had two jobs.

ruthie117

thanks jem i understand what you are saying and i will in future be much more vigilant.

i guess as i have never had two jobs before and i was only actually work what are fulltime hours in the NHS but split between 2 jobs i hadnt really given it a thought.

i also relied on the payroll dept to spot this issue especially as it was the same payroll for both organisations and they knew that i was working in 2 different roles...after all i only had one P45 when i started, i think that i had to photocopy it and send it with a note to explain why.

System

Just to point you at some background info with regard to tax codes for a second job... see : HMRC Tax Codes - The Basics

The relevant info can be found part way down the webpage as follows:

Other tax codes and what they mean
Code : BR
Reason for use :
Is used when all your income is taxed at the basic rate - currently 20 per cent (most commonly used for a second job or pension but may also be used if you’ve started a new job, don’t have a form P45 and haven’t completed a form P46 before your first pay day)

If you have two jobs or pensions, it is likely that all of your second income will be taxed at the basic or higher rate - depending on how much you earn. This is because all of your allowances will have been used against the income from your main job or pension. If you are due to pay tax at the additional rate of 50 per cent, read the section 'Effect on your tax and tax code - if your income is above £150,000'.

chrisbur

ruthie117 wrote: »

thanks jem i understand what you are saying and i will in future be much more vigilant.

i guess as i have never had two jobs before and i was only actually work what are fulltime hours in the NHS but split between 2 jobs i hadnt really given it a thought.

i also relied on the payroll dept to spot this issue especially as it was the same payroll for both organisations and they knew that i was working in 2 different roles...after all i only had one P45 when i started, i think that i had to photocopy it and send it with a note to explain why.

A photocopy of a P45 should never be accepted by an employer.
You should have been asked to fill in a P46 or a form containing the P46 details for the job that had no P45. The main point is the following questions which depending on your answers decide your tax code.

A – This is my first job since last 6 April and

I have not been receiving taxable Jobseeker's
Allowance, Employment and Support Allowance
or taxable Incapacity Benefit or a state or
occupational pension.
OR

B – This is now my only job, but since last 6 April

I have had another job, or have received
taxable Jobseeker's Allowance,
Employment and Support Allowance or
taxable Incapacity Benefit. I do not receive
a state or occupational pension.
OR

C – I have another job or receive a state or

occupational pension.
If you chose A or B then the fault lies entirely with you; but if you chose C or were not offered the options or did not select any, then you could perhaps make a case for the error being your employer's especially as you told them and sent a P45 copy that they should not have used.
I have no idea if this would be succecful but you might consider it, assuming you did not select A or B.

ruthie117

hi chrisbur

i certainly dont remember being given anything that asked if i had another job, except possibly at interview where i know that is often a standard question in the NHS.
i am almost 100% sure that if i had been given a form asking if this was my only job then i would have said no!

i checked my email account today and in December 2008 (i started in this 2 job situation in june/july 2008) i had to email payroll to tell them that they had paid me an allowance twice.

i am a registered health professional and the NHS contribute yearly towards the fee we pay to be registered, i received it twice and checking the policy found that this should not occur hence i informed payroll who then claimed this back, although i know that this has nothing to do with my tax i wonder if this should indicate that the payroll were made aware that i had 2 posts??

i should say that i have no real issue with the fact that i owe the tax but frankly i am annoyed that it wasnt brought to light sooner.

ruthie117

i have contacted payroll today and they say that for Job X they submitted a P45 and for job Z they submitted a P46.

a couple of months after this HMRC issued them with a new tax code which is the one that was applied 603L (this was 2008/09) for job Z

this is clearly the route of the problem as the code did not take into account the two jobs.

i think part of the problem may also stem from the fact that while the payroll for both is based in one county i actually work there and over the border in another county so there are 2 tax offices!

Job Z is the one for which the 603L tax code was issued, payroll did not mention recieving anything for Job X. it was only in january this year that i recieved a coding notice for this one and the fact that this would have the tax code BR. (didnt receive anything for the other job as far as i can find in my records)

i will have to check with payroll to see if there had been any other coding notices for job Z because i havent been able to find any in my records.

i am just left confused as to whether this is all my fault, but i believed all relevant information had been sent to HMRC (and payroll seem to confirm this)

does anyone know if you have two jobs would be standard pratice to get only one tax coding letter???

jem16

ruthie117 wrote: »

i
does anyone know if you have two jobs would be standard pratice to get only one tax coding letter???

I have two sources of income - one job and one pension. I receive a coding notice for each.