Been paying the wrong amount of tax

delirious

I could really do with some advice please.

I currently have 2 part time jobs. I started Job A first and am under tax code 647L. The second job, Job B began about 5 months ago and is also under tax code 647L. Combined between both jobs, I get about £20k but I seem to be very low amount of tax and NI. I also haven't started paying back my student loan which should be payable after earning £15k.

I've also started working part time as self employed but will earn a maximum of £2k per year at the moment.

What's the best thing for me to do to sort all this out?

Thanks

KiKi

Hiya

Your tax code, 647L, should be applied to your earnings overall, meaning that you pay tax at 20% on everything over £6,475. You are getting this tax-free allowance on both jobs!

I'm not sure if you need to call HMRC to sort this out, or whether to do it through your second employer. I personally would call HMRC and tell them your second job should be on tax code BR (Basic Rate, ie, you pay 20% on everything on that job. This assumes you earn more than £6,475 in your first job.)

Your student loan repayments should then kick in once you're earning the right amount.

Regarding working as SE you MUST call HMRC about this to register as SE. You will then have to complete a tax return each year, and HMRC will work out what tax you owe on your SE earnings. But as long as your PAYE job earns more than £6,475, then your SE earnings will be taxed at 20%, and NI will also be due at around 8%.

Call HMRC (be prepared to wait on the phone) and sort out the double tax code issue, as well as registering for SE asap.

HTH

KiKi

delirious

KiKi wrote: »

Hiya

Your tax code, 647L, should be applied to your earnings overall, meaning that you pay tax at 20% on everything over £6,475. You are getting this tax-free allowance on both jobs!

I'm not sure if you need to call HMRC to sort this out, or whether to do it through your second employer. I personally would call HMRC and tell them your second job should be on tax code BR (Basic Rate, ie, you pay 20% on everything on that job. This assumes you earn more than £6,475 in your first job.)

Your student loan repayments should then kick in once you're earning the right amount.

Regarding working as SE you MUST call HMRC about this to register as SE. You will then have to complete a tax return each year, and HMRC will work out what tax you owe on your SE earnings. But as long as your PAYE job earns more than £6,475, then your SE earnings will be taxed at 20%, and NI will also be due at around 8%.

Call HMRC (be prepared to wait on the phone) and sort out the double tax code issue, as well as registering for SE asap.

HTH

KiKi

Thanks, I am already registered with HMRC as self employed so that's not an issue.

I will give HMRC a call tomorrow about the double tax code though.

Thanks

Mudd14

For a quick fix fill out a P46 for one of your jobs and tick box C to say you have another job, they will then operate on a BR code (or 0T for the new tax year)

GavB79

Yes a P46 is a bit late for this tax year. It's unlikely to be processed in time for corrections to be done through PAYE.
Give HMRC a ring and explain, so long as you are expecting to be asked to pay a whack of tax you'll be fine.
You don't typically pay NI on a second PAYE job so a refund of that may cushion the blow, but as you are working two part-time jobs I'm not sure of the thresholds that apply.

Savvy_Sue

GavB79 wrote: »

You don't typically pay NI on a second PAYE job so a refund of that may cushion the blow, but as you are working two part-time jobs I'm not sure of the thresholds that apply.

NI doesn't work like that: if you earn over about £100 pw you have to pay it, and it's not refundable if in another week you earn less than that.

OP, you want your 'main' job to have the 647L tax code, ie the one which pays most.