Tax on 2 jobs

mojo10183

Hello, ive been reading page after page to shed some light on whats happening to me... but no luck Sorry.

Basically i have been working partime for the past four years whilst i was a student. Then i graduated and got myself a fulltime job, keeping my part-time job (10hrs a week) too... as i needed the extra cash for xmas.

P/T : Have paid no tax til about a month ago where code was changed to BR.
F/T : have paid BR tax til august. :mad:

After numerous phone calls to the Inland Revenue :mad: they have finally sent me two letters stating that my P/T job will be BR and F/T 503L.

The P/T job recieved theirs and adjusted accordingly... the F/T job however, did not recieve theirs so i was still taxed BR. So i had to ask the IR 3 times to fax the notification over again.

Then i called my F/T payroll a few weeks later for peace of mind. They said they had recieved the fax, but my code will be 503L on the month 1 basis (i guess this is 503L M1?) . What does this mean? Will i be paying the same tax as the normal 503L? Or more or less again?

Then i just had a thought. Will they take into account the earnings from my P/T job since april which i have paid no tax on? Does this mean i owe them rather than they owe me??

jem16

Your P/T job should certainly be BR as it's a 2nd income.

F/T job would normally be 503L. The M1 means that thay are looking at each month separately and not the tax year cumulatively. In normal circumstances this would not make any difference as you get all the allowances you should get.

Where it will make a difference is if you had overpaid tax as you probably have on your F/T job having paid BR initially. The tax office is probably not sure of your total earnings yet between the two jobs and it may take until the new tax year to get it finalised.

It is possible you may owe tax.

Hoddie provided these figures - they may help you but adjust the first one to £5035.

Add up all his income to date, from the pension and all employers, regardless of what tax code has been used.

The first 3392.66 is tax free (5089 x 8/12)
The next 1433.33 is taxed at 10% (2150 x 8/12)
The next 20766.66 is taxed at 22% (31150 x 8/12)
Any remainder is taxed at 40%

Adjust the figures if you want to work it out from month 9, or use x/52ths if paid weekly (x/26ths if fortnightly or x/13ths if 4-weekly, etc).

SonniC55

Hi Mojo
Your circumstances are not unusual and the updated coding to 503 M1 on your full time earnings is probably the easiest way of correcting your affairs until year end (5th April 07).
At which point you total earnngs and liability can be calculated against the tax paid to date to come out with any under/overpayment due.
It would be wrong to say (without more detail) if you would be due a refund or if you would owe tax, this would depend on how much you earned P/T but im guessing that you earned more F/T than P/T - this being the case chances are you have underpaid tax P/T and overpaid tax F/T.
The alternative is for your tax office to advise your F/T employer what your total earnings and tax paid figures were from P/T just before it was amended to BR.
Once these figures are added to your F/T pay then your coding can be updated from M1 to culmulative - this way any under/over paid tax can be fixed now rather than waiting to year end.
This could be the better option from your point of view and there is no reason why HMRC cant do it

Hope this helps

mrsS_2

I have found that getting your ft employer to send a letter to HMR&C with copies of your last payslip from BOTH jobs works wonders!