2 jobs tax code query - advice please?

Werdnal

I do the wages for a local community group in our village. We have 4 part-time employees, and about 3 months ago, we took on another "casual" part-time worker to act as cover for absence of other staff. This person probably works 5-6 mornings a month, on an "as and when required" basis. We gave her a contract of employment and I declare her earnings long with the other employees, to the HMRC, but so far she has never earned enough to pay any tax through us.

This week, she has advised she has taken another part-time job, which is shift work, so she will still be able to work on an emergency only basis for us if her rota allows. When she was taken on by the new employer, she completed a P46, and advised that it was a "2nd job", so she is obviously now going to be taxed at BR on the earnings on that job. She will earn far more with them, than she will ever earn with us, so this is the wrong way around!

She asked whether I could "lay her off" and issue her a P45 from us, then when she is next called in to do any work with us, I take her on again. She wants to present the P45 to her new employer, to get her tax code changed, so the BR rate will then apply to her wage with us, which will then become her 2nd job, IYSWIM. I am happy to do this, but it seems very long winded and a bit of a fiddle really.

Can anyone advise what to do here please? I assume she can contact HMRC herself and advise them that the 1st job with us is only a few hours a week, and therefore she wants the tax on that to be the higher rate, rather than the 2nd job in which she will earn the higher wage.

Any advice please?

Lucee

Hi,

Don't create yourself work - she needs to contact HMRC herself and explain the situation. She will need to give them all the details PAYE number for both jobs, what she expects to earn and that she wishes to use all of her allowance against her higher paid job.

HMRC will be able to apply the higher tax code to the better paid job, and you should receive notification for a 0T code.

HMRC receive many of these requests and in my experience they are able to issue new tax codes very quickly, providing they have received details regarding her new employer - in order for this to happen she will need to complete a P46, and state that she has another job (section C).

Lucee x

t0rt0ise

Give her the phone number to call

0845 300 0627

8am - 8pm Mon to Fri and 8am to 4pm Saturdays.

It's an odd phone line as there are so many menus to get through with different options that it's easy to give up. But when you do get through they are very good. You need your NI number before you start.

Bonbon

I currently have 2 jobs. As I started the part time job first (4.5 hrs a week) I gave my P45. Then when I started the full time job I filled in a P46.This week I received a letter from Inland Revenue containing 2 tax codes ( my main code 747L divided proportionately between the 2 jobs). Based on the codes that I have been given it means I will never earn enough to pay tax on the part time one. I don't think you can choose which job you want to pay most tax on.

DVardysShadow

Bonbon wrote: »

I currently have 2 jobs. As I started the part time job first (4.5 hrs a week) I gave my P45. Then when I started the full time job I filled in a P46.This week I received a letter from Inland Revenue containing 2 tax codes ( my main code 747L divided proportionately between the 2 jobs). Based on the codes that I have been given it means I will never earn enough to pay tax on the part time one. I don't think you can choose which job you want to pay most tax on.

Then you will be paying too much tax on the other job. Assuming you will earn more than your tax allowance on the main job, you should have been given a tax code of BR [basic rate] on your part time job. HMRC will let you adjust between jobs [within reason] and I am surprised they apportioned the tax allowance.