tax question?

proevofanatik

i have been made redundant. my boss is giving me a months notice. he has told me that i dont have to work it so i can got job hunting and he is still paying me untill the 30th of september. really fair boss. not got one bad word to say about him. any way i have an interview tomorrow. if i get that job and im required to start asap like the next day. am i going to be taxed heavily because ill technicaly have 2 jobs untill the 30th of september?

mountainofdebt

yes is the short answer -the 1st will have the benefit of your tax allowance and the 2nd will be on emergency tax as you won't have your P45 to give to your new employer.

But look at the positives - two months pay in one month!

proevofanatik

i know its great having the 2 months pay. when you say emergency tax. will i get that back then? after my p45 gets sorted out?

MissSarah1972

It depends if your payment was Gross with no tax payment? When I left my last job my month in lieu was not taxed and the date I left was the date on my P45.

How has yours been paid?

chrisbur

If you are getting paid by your old employer and new employer both in the same tax period, one using your correct tax code and the other the emergency tax code then you will underpay tax. You will be getting two tax allowances when only one is due. This will correct when your P45 is processed by your new employer and the underdeducted tax will be taken.

proevofanatik

so i wont lose out on any money then. ill eventually get my emergency tax by underpaying tax then the tax will go back to normal?

chrisbur

proevofanatik wrote: »

so i wont lose out on any money then. ill eventually get my emergency tax by underpaying tax then the tax will go back to normal?

Not quite. In the circumstances I described you will first underpay tax and this underpayment will later be collected as extra tax then you will go back to normal.

Whatever happens your tax may be wrong for a some paydays but the tax will eventually correct itself. In the end tax is worked out on your total earnings for the year so however you are paid the tax due for the year will not change.