P46 - 2nd Job (1st on Unpid Maternity)

dazzak_2

Hi,

My wife is currently on the last part of her maternity leave which is unpaid. To counter the drop in cash flow and to keep busy on the days our son goes to nursery, she has decided to do a part time bar job close by to where we live (less than 16hrs per week) until she goes back to her job in 2-3 months time.

I did some research on the P46 and ascertained that she should tick Box "C" for personal circumstances / Employee statement as:

1- She is still employed by her main/1st Employer (albeit on unpaid maternity);
2- She has "earned" money since 1st April albeit Statutory Maternity pay

Based on this info - is Box "C" the right one as when she started at the bar today, the owner went through the P46 with her and said it should be Box B (it seems as though the owner wanted it to be this option for a particular reason that I'm not sure of.) Therefore I'd like to see if anyone knows:

1- What impact will this have to my wife's tax/tax code overall and/or with her 'Main Employer"
2- Why would the 2nd job employer want it to be "B"
3 - How this can be rectified (or does it even need to be) - via the 2nd employer or calling HMRC?

Thanks all in advance, hope the above covers all the info required by those in the "know"

chrisbur

dazzak wrote: »

Hi,

My wife is currently on the last part of her maternity leave which is unpaid. To counter the drop in cash flow and to keep busy on the days our son goes to nursery, she has decided to do a part time bar job close by to where we live (less than 16hrs per week) until she goes back to her job in 2-3 months time.

I did some research on the P46 and ascertained that she should tick Box "C" for personal circumstances / Employee statement as:

1- She is still employed by her main/1st Employer (albeit on unpaid maternity);
2- She has "earned" money since 1st April albeit Statutory Maternity pay

Based on this info - is Box "C" the right one as when she started at the bar today, the owner went through the P46 with her and said it should be Box B (it seems as though the owner wanted it to be this option for a particular reason that I'm not sure of.) Therefore I'd like to see if anyone knows:

1- What impact will this have to my wife's tax/tax code overall and/or with her 'Main Employer"
2- Why would the 2nd job employer want it to be "B"
3 - How this can be rectified (or does it even need to be) - via the 2nd employer or calling HMRC?

Thanks all in advance, hope the above covers all the info required by those in the "know"

C is the correct option, B would proberbly result in to little tax being paid, though cannot say for certain without knowing the full figures.

If the earnings are under the Lower Earnings Limit, currently £107 from memory, and box A or B are signed the employer only has to keep a record of a few details about the employee and what was paid and hold the P46 in case the earnings go over the LEL. If box C is selected then the P46 has to be sent to the tax office, tax has to be deducted, paid each month or quarter to HMRC and at the year end a return has to be done to HMRC.
So basicly a lot simpler for the employer if A or B signed, assuming earnings under the LEL.
If earnings over the LEL then sorry no idea.

Sambucus_Nigra

I think that as soon as she does 10 'keeping in touch' days, if she works more than that, she is deemed to have gone back to work and maternity leave ends. Paid or not paid.

Just check on that before she does anything...

dazzak_2

Sambucus_Nigra wrote: »

I think that as soon as she does 10 'keeping in touch' days, if she works more than that, she is deemed to have gone back to work and maternity leave ends. Paid or not paid.

Just check on that before she does anything...

Hi - Thanks for that - I believe from what I read that if you go over 10 KIT days that SMP stops - given SMP has already stopped as she's in unpaid Maternity Leave, we think this wont affect it. Good to dbl check though!

dazzak_2

chrisbur wrote: »

C is the correct option, B would proberbly result in to little tax being paid, though cannot say for certain without knowing the full figures.

If the earnings are under the Lower Earnings Limit, currently £107 from memory, and box A or B are signed the employer only has to keep a record of a few details about the employee and what was paid and hold the P46 in case the earnings go over the LEL. If box C is selected then the P46 has to be sent to the tax office, tax has to be deducted, paid each month or quarter to HMRC and at the year end a return has to be done to HMRC.
So basicly a lot simpler for the employer if A or B signed, assuming earnings under the LEL.
If earnings over the LEL then sorry no idea.

Hi - thanks for the details. She will be earning NMW (£6.08) and doing 10-16 hours per week so under the LEL until she returns to full time work in Oct/Nov at which point she expects to give up this part time job. By ticking "B" will this affect her tax code or details with her main employer (with whom she's on unpaid Mat leave)?

Sambucus_Nigra

dazzak wrote: »

Hi - Thanks for that - I believe from what I read that if you go over 10 KIT days that SMP stops - given SMP has already stopped as she's in unpaid Maternity Leave, we think this wont affect it. Good to dbl check though!

From gov website...You can work up to ten days' during your Statutory Maternity Leave without losing your Statutory Maternity Pay, Maternity Allowance or ending your leave.http://www.direct.gov.uk/en/Parents/Moneyandworkentitlements/WorkAndFamilies/Pregnancyandmaternityrights/DG_175088

So if she goes over the 10 days, it means the end of her leave. It's nothing to do with the pay, it's to do with the leave.

getmore4less

Does your contract of employment for the main job allow you to take on other work?

chrisbur

dazzak wrote: »

Hi - thanks for the details. She will be earning NMW (£6.08) and doing 10-16 hours per week so under the LEL until she returns to full time work in Oct/Nov at which point she expects to give up this part time job. By ticking "B" will this affect her tax code or details with her main employer (with whom she's on unpaid Mat leave)?

This will not affect her tax code with her main employer if box B is selected. The point is that if box B is selected no return of earnings will be made to the tax office, tax will be assesed at the year end as if these earnings had not existed, and so tax that is due may well not have been paid.
Do you intend to declare these earnings?

dazzak_2

getmore4less wrote: »

Does your contract of employment for the main job allow you to take on other work?

Her company's People/Pay Services have said it's ok which is good!

dazzak_2

chrisbur wrote: »

This will not affect her tax code with her main employer if box B is selected. The point is that if box B is selected no return of earnings will be made to the tax office, tax will be assesed at the year end as if these earnings had not existed, and so tax that is due may well not have been paid.
Do you intend to declare these earnings?

Probably not to be honest - she only plans to do max 2 months of this until she returns to work. A good portion of her pay with her main employer is untaxed as she's cabin crew for an airline and therefore earns outside of the UK.

dazzak_2

I saw on a "working mums" website a similar question which was responded by an employment lawyer stating working more than 10 days during SMP is what will stop your pay/leave. My wife is outside of MPP (Maternity Pay Period and therefore not receiving SMP).