2 jobs and wrong tax codes

Nicky321

my daughter has 2 jobs in her 2nd job she earns a maximum of £1983 per year and had a tax code of 205L, her 1st job she earn a maximum of £7800 but her tax code for this is BR. Surely he tax allowance should be 795L? making her total annual tax allowance of 1000L?

System

hello nicky321

Just out of interest, the job with the tax code BR, did she start this job either after a while unemployed or shes been long term training after school/college? And how long has she been employed with them?

I only ask this as when I unemployed and then got a temporary contract job, I was place on the BR tax code.I had to claim the tax back using a P50 form.

If you have any doubt about her tax code you should inquire with HMRC.
You can even make the inquiry on online now from they website ( not sure how long would take for a reply) if you do not want to hang on the phone for a while. this should be the web page (canceling the excessive spaces and the www, I am unable to paste links as quite new to site)
hmrc.gov.uk/ incometax/ email-taxcode-wrong.htm

hope this helps.

Nicky321

Thankyou thetastyveg,

she has been employed at this place of work since Sept 2012 and had a break of less than a week on unemployment benefit before a new manager took over and she was then reemployed. She has telephoned and contacted HRMC via the online form notifying them of her places of work and gross annual income for each employment, but they have written to her saying her tax code for her 1st job for 2014/2015 will be BR.

t0rt0ise

When she calls them and asks about it and they say the code with be BR what reason do they give? She must ask why?

System

Hello Nicky321,

You are very welcome. Your last post has given me a clearer view/idea of how HMRC see this and their reason:

Basically I think this is why they have done this:
1) As the company (BR code) company filed with HMRC that she was no longer was employed with them (did she get notice of this redundancy,if so the company most likely filed their forms/notified hmrc of this)

2)As the company re-empolyed her, and informed hmrc of this new contract, HMRC now see this employment as her second job and classed this as an additional income (even though everyone else would see this as her main source of empolyment and the other as her additional income).

:sad:Unfortunately I do not think it possible that HMRC will change this BR code, unless she was to quit/resign from her lower paid job which would then trigger HMRC to change her code to the nomal 1000L tax code & then go back to the lower paid job in which this job would get a BR tax code(many employers hate messing around with Tax codes & HMRC in general). If she was not willing to undertake this then she would have to file a P50 form at the end of this tax year ( which unfortunately would mean she would be losing quiet a bit in tax of this BR code job until she filed the P50 form at the end of year)

This is my theory in what has happened and how HMRC see this.
( also they get crap loads of interest from the banks while its in their accounts)

HMRC nether make it easy just by swapping the stupid tax codes over on the jobs.:mad:

I am sorry but this is the only way I could see HMRC changing the tax codes and I would nether encourage to someone to quit their empolyment/job

sorry again.:sad:

patanne

A quick phone call to HMRC telling them how you want the tax code splitting will sort this out. They only dictate how much tax allowance you get & not what income it is set against. If the total income is below the total tax allowance then split it to just cover the income from each job. They probably think she still has the original job as well as the job she restarted. RTI is supposed to have solved this but output can only be as good as the input.

Mrs_Soup

Usually HMRC figure out after a few months and split the tax code for you but if they don't just phone and ask them to do so then the higher portion of it can be allocated to the higher paying job.

patanne

I've been rethinking this and have a couple of questions partly due to unemployment benefit being mentioned. Did she receive a P45 from the original manager? Did she give that P45 to JC? Did the JC give her a P45 when she signed off and if they did was it correct? They have a tendency to omit pay & tax in a previous employment. Did she then give this last P45 to her new employer.