Two jobs under tax threshold

Linda32

Hello all,

I hope I am in the right place and hope that my question is clear, as I've never been in this situation before.

I am about to start an additional job to my current one.

First job I will be working 23hrs per week and second job 17hrs per week.
Nether will earn enough to pay tax on their own but collectively, obviously its a full weeks work.

I have rang HMRC who say that I will be asked to fill in a P46 which I understand is for employers without a P45. The tax office say that they will then hold to sets of records for me and will devide my tax code accordingly.

I have seen mention of this happening having googled.

The 17 hr job is paid weekly, one week in hand so I understand that the first week is unlikely to be taxed at all. Until this employer gains my new tax code. HMRC mentioned 28 days.

(The other job is paid 4 weekly, with pay day being next Friday, so this job might receive the new code in time for the following payday after that)

My question is, if I do a calculation of 20% of each earnings amounts would this give me a near enough figure to save just in case I am not taxed at all.

And, in practice does this spliting of a tax code work, and I pay the correct amount on each job as if I'd earned the money from one job.

TIA

xylophone

http://iknowtax.com

http://www.hmrc.gov.uk/incometax/check-multiple-codes.htm

"Avoid paying too much tax if you don't pay tax on your main job
If you don't pay tax on your earnings from your main job and you're not using all of your Personal Allowance you can tell HMRC to use what's left in your second job. If you don't do this you could end up paying too much tax. You can share your Personal Allowance across several jobs or pensions until it's all used up.
Example: your Personal Allowance is £8,105 (tax year 2012-13) and you have PAYE income from two jobs - income of £3,500 from your main job and income of £1,500 from your second job. You can tell HMRC to use £4,605 of your unused Personal Allowance (£8,105 less £3,500) from your main job against your income from your second job so that you don't have to pay tax on either income."

CLAPTON

lets suppose you earn 7,000 in one job and 4,000 in the other in the tax year 2012-13

your tax free allowance is 8,105

so you could e.g. split the tax code to give a tax allowance of 7,000 on the first job so no tax would be paid i.e. taxcode of 700

and to give the remainder of your tax allowance 1,105 against the 4,000 income (taxcode of 110) which means you would pay 20% of 2,895 (= 579)

nomunnofun

CLAPTON wrote: »

lets suppose you earn 7,000 in one job and 4,000 in the other in the tax year 2012-13

your tax free allowance is 8,105

so you could e.g. split the tax code to give a tax allowance of 7,000 on the first job so no tax would be paid i.e. taxcode of 700

and to give the remainder of your tax allowance 1,105 against the 4,000 income (taxcode of 110) which means you would pay 20% of 2,895 (= 579)

While that is clearly the way to resolve the problem, is that what actually happens in practice? (That is not to cast doubt on your answer - I just want to know). It used to be that when a taxpayer had two jobs there was a main source (GCD). The directive was always to allocate enough allowances to 'cover' the second job in order that any tax due would be paid at the main source. In your example, 4000 would be allocated against the second source (400T) with the remaining 4105 (410L) against the main source. This never made complete sense to me as there was always the possibility that the allowances allocated to the second job could be too high, with the result that all of the personal allowance was not utilised.

Do you have any knowledge as to the actual directive at HMRC if, indeed, there is one?

Dazed_and_confused

This seems to be the current rules

http://www.hmrc.gov.uk/manuals/pommanual/PAYE13115.htm

LEP

meant to start a new thread!

nomunnofun

Thanks D & C - the Employments Allocation Function eh! Times have indeed changed!

zygurat789

nomunnofun wrote: »

While that is clearly the way to resolve the problem, is that what actually happens in practice? (That is not to cast doubt on your answer - I just want to know). It used to be that when a taxpayer had two jobs there was a main source (GCD). The directive was always to allocate enough allowances to 'cover' the second job in order that any tax due would be paid at the main source. In your example, 4000 would be allocated against the second source (400T) with the remaining 4105 (410L) against the main source. This never made complete sense to me as there was always the possibility that the allowances allocated to the second job could be too high, with the result that all of the personal allowance was not utilised.

Do you have any knowledge as to the actual directive at HMRC if, indeed, there is one?

YES I tell HMRC what to allocate to each job and they HAVE to do it.

HMRC keep trying to allocate allowances to my daughter's part time job
which is seasonal Sept-May. If we allowed them to get away with this then my daughter would have unused allowances carried forward throughout the summer and be having to pay too much tax in her main job.