Need advice on tax

Antowns

Hi,

Need a bit of advice, my girlfriend had just gotten a second job to get extra hours. She got a second job about 2-3 weeks ago and her boss said he'd send off for her tax code and she was on emergency tax until then.

She got a letter through the post with new tax codes and we didn't think anything of it. She was suppose to get paid from her main job today and they took around 250-300 of her wage (left her with £15 for 2 weeks of work) saying she owes tax.

We think its because they're assuming she's had another job for ages which she hasn't. She actually got a tax refund not so long ago for £70 so I don't understand how she can suddenly owe tax.

Need advice on what to do and any thoughts.

Mikeyorks

What are the Codes for each job?

The main job should (still) be 747L and the 2nd job 'BR'.

Antowns

The second one is BR, I don't have her main job's wage slip here though just her second one. I'll get back to you on her main one though. She's already being taxed 20% of her weekly wage on her second job.

McKneff

Has she paid 20% on her second job since she started.

Just a tip, keep all wage slips safe.

zygurat789

Antowns wrote: »

Hi,

Need a bit of advice, my girlfriend had just gotten a second job to get extra hours. She got a second job about 2-3 weeks ago and her boss said he'd send off for her tax code and she was on emergency tax until then.

She got a letter through the post with new tax codes and we didn't think anything of it. She was suppose to get paid from her main job today and they took around 250-300 of her wage (left her with £15 for 2 weeks of work) saying she owes tax.

We think its because they're assuming she's had another job for ages which she hasn't. She actually got a tax refund not so long ago for £70 so I don't understand how she can suddenly owe tax.

Need advice on what to do and any thoughts.

Advice
Always think about letters from HMRC, they take money from you.
Her boss can't put her on emergency tax he HAS to use the code number sent to him by HMRC
Always deal with your tax affairs yourself you know more about yourself than your boss.
Thoughts
Your whole problem is communication tell the taxman the whole story truthfully and he will usually get it right.

The only way you will get any help here is to communicate the problem which is the code number used on the last payslip and how it was made up (that letter from HMRC)

Mikeyorks

Antowns wrote: »

The second one is BR, I don't have her main job's wage slip here though just her second one. I'll get back to you on her main one though. She's already being taxed 20% of her weekly wage on her second job.

'BR' will - correctly - tax everything at 20%. As all the personal allowance is allowed against the main job.

But it's the Code against the main job that's the problem as it's that change that has given rise to the significant tax deduction. At this late stage of the year then any major revise downwards should be issued, by HMRC, on a Week 1 / Month 1 basis in order to stop anything like that happening.

Antowns

Hi,

She's paid 20% tax since she started at the second job. I think she's gonna phone up HMRC tomorrow, she got like 2 letters with different tax codes on I remember her saying.

zygurat789

BR on the second job is correct, there never was any need for the code number of her main job to be altered.
She should never have told her main job she had a second job, it's none of their business, my daughter has two jobs and she would be annoyed if her main job found out. HMRC have to observe the data protection act too.

Antowns

She didn't tell her main job that she had a new job, her new job's boss said that he would have to request a new tax code and a new one came through to her house from HMRC. He said until then she'd be on emergency tax.

But nothing seems to have changed since the new tax code BR seems to take 20% of the wage anyway.

Mikeyorks

Antowns wrote: »

She didn't tell her main job that she had a new job, her new job's boss said that he would have to request a new tax code and a new one came through to her house from HMRC. He said until then she'd be on emergency tax.

Which is all correct (ish) - she will have completed a P46 with the 2nd employer and (hopefully) ticked box 'C'. But she should have been on 'BR' from the outset. I suspect her 'new boss' thinks that's emergency code - which it isn't.

But the real issue is the implied change to the main job Code - can't take it forward without that. Are you certain she hasn't asked HMRC to split her allowance between the 2 x jobs? But - unlikely - as BR would then be wrong.

zygurat789

The main job is just that, by definition, her second job is, therefore, the one which is most likely to b changed first. If the tax codes are split then if she leaves her second job and does not, for some time, find a new one then she will pay more tax than she needs.
So long as she earns more than £7475 in the year to 5/4/12 and 8105 in the next year in her first job then she will pay 20% tax on all earnings over that figure from either her first or her second job and she should have a code of BR and pay tax of 20% on her earnings from her second job.
Do you fully understand this?