Full time hours to be split across 2 associated companies. Help?

LeSigh

Good evening,

Hoping someone here can advise me a little bit.

I work for a company full time. I have a contract which is for the part time hours I was originally taken on for. After a discussion, I had my hours increased to full time.

I was asked recently if I would be happy for half my pay to be made through the company I have my part time contract with (the full time contract didn't materialise ) and for the remainder to be paid through an associated company (which I do work for - same office).

Does anyone have any advice / comments? Will my pay be affected? Is having two part time contracts (assuming I even get a contract for the associated company) a disadvantage to having one full time contract with one company?

Bit confused really as I was asked about this in passing without actually giving a reply. Now this month's pay is going to split this way. I would just like to be informed really as I haven't been told anything other than my pay will be the same.

Help?

LeSigh

I could really use some help / advice

LittleVoice

Do they intend to make one payment each pay day or to pay you separately from each company?

LeSigh

I will be paid on the same day, but with two payslips, one from each company.

Thank you for reading my post!

LittleVoice

LeSigh wrote: »

I will be paid on the same day, but with two payslips, one from each company.

Thank you for reading my post!

In that case, I wonder what they mean by your "pay will be the same. I assume that your hourly rate will not change - but it may be that, taken together, they could be saving employers NI.

Depending on how much you earn, you might also be saving NI contributions.

Do you earn enough in either job to take full advantage of your personal tax-free allowance in that job? If not, how do they intend to split your tax code? (They would need to get it split by HMRC.)

I'm not anything like a tax expert but there may be some problem if the two companies are associated but try to treat you as two separate employees, IYSWIM.

LeSigh

My comment about my pay remaining the same just meant that my combined pay from both companies will equal the full time pay I am on at the moment.

I am earning just over £17k with about £9k to be paid via my current company as my "main" job. The remainder £8k to be paid by the associated company.

I am not in a pension scheme if that is relevant.

Your last comment is exactly the kind of thing I am trying to bottom out. I have no idea at all what the implications are regarding being paid by the associated company. Or what it means in terms of my contract (should I get a contract from the other company?!)

I feel completely ignorant to my situation. I would like some impartial advice if you or anyone else has any.

Savvy_Sue

I'd say you have all the advantages and disadvantages of working for two separate companies in two separate jobs, with the added complication that they're both in the same office ...

Presumably in the 'second' job, your start date is later, so in that job you have less employment protection until you've been there two years (currently one, but going up to two in April, so you're caught by that).

And what happens when both jobs hit a busy period, who gets priority? At least if you're doing two jobs in separate places you don't get that conflict in your face.

LeSigh

Thanks for pointing that out, re the employment protection. Again another fact I was not aware of.
Workload is Ok. I probably spend less than half an hour doing work for the associated company. My role isnt changing just who pays me. But this is happening without so much as a discussion outlining why or any impact it will have... Sigh.
Thanks for comment

eeeeeee

am i right in saying that technically in the eyes of hmrc .. you will have 2 jobs ? as you have 2 payslips and 2 companies paying you ?what about your tax code ?

LittleVoice

eeeeeee wrote: »

am i right in saying that technically in the eyes of hmrc .. you will have 2 jobs ? as you have 2 payslips and 2 companies paying you ?what about your tax code ?

As the OP's pay in either job appears to be more than this year's personal allowance, it would not matter which company operated the code (there's no need to split it) - though it would be sensible for it to be the one to be the one with the higher earnings because tax allowances tend to go up each year and pay may not keep up. In practice it would be the company which is currently paying the OP.

In the eyes of the HMRC, I am not sure that this would be two job.

LeSigh

eeeeeee wrote: »

am i right in saying that technically in the eyes of hmrc .. you will have 2 jobs ? as you have 2 payslips and 2 companies paying you ?what about your tax code ?

From their point of view..I guess so. I will be on tax code 757L for the main company and BR for the other company.

I think I understand the tax element but not the NI element.
Initially I was told I might pay less NI.. then I was told my wages would be identical and NI contributions would be the same as the companies are associated.

I'm not bothered about paying less NI.. I just want to pay the right amount of NI. I literally cannot find any help on it. Or any calculator for this scenario.

What about the fact that I literally spend less than 30 mins daily doing work for the associated company. Is it fine to be paid almost my half salary by them?

So confused

Thanks for your help