should I be paying tax

daniel80

I took early retirement after being pensioned off sick from my particular job. I receive £17000 a year pension with a tax code of 747L.Just recently I have secured a part time job for 24 hours a week paying £6.50 an hour.When I checked my first months wage packet I noticed that I had not been stopped any tax,is this right because I am paying tax on my pension and my new job is under the threshold or should I be paying tax on these earnings. Any advice would be welcome because I am not to sure what to do.

Lokolo

Is your parttime job with a tax code of 747L as well?

Your tax code (if used in full), should only be used on one source of income.

CLAPTON

check your tax code on your new job .. it should be BR

patanne

Going off the information you have given, you should be paying tax on all that you are earning. Your employer should have asked you to fill in a P46 which asks about other income which should have triggered a zero tax code. The sooner you get them/HMRC to get you on the correct tax code the less of a nasty surprise it will be. I would expect you to be paying approx £31.20 tax per week, which could be a problem a year or more down the line.

daniel80

yes on my payslip it has a tax code of 747l but no tax stopped.

Lokolo

That's because you aren't earning enough to pay tax on a 747L tax code. 747L means you can earn £7,475 before paying tax. However, you shouldn't have a 747L tax code because you already have it on your pension.

You should fill in a P46 - http://www.hmrc.gov.uk/forms/p46.pdf

And tick Box C, as you are receiving a pension. And give this to your employer (if they have one, HR department). It maybe worthwhile ringing your local tax office and telling them about the situation which they could resolve.