Any accountant here willing to help me with my new job tax?

agrinnall

P46 form is no longer in use, the New Starter Checklist has replaced it (and asks much the same questions I believe) so I expect that was what the OP completed.

I'm not sure whether an employer can set the tax code to BR rather than the emergency code of 1000L, I suspect that it has come from HMRC, and it may well be right as we have not the slightest clue what the OP's self employed earning this year or in previous years has been. If it is right then the amount of tax deducted is correct.

CLAPTON

phone HMRC and tell them you about your PAYE job and that you want your tax allowances set against it and not BR code.

chrisbur

When starting your new employer should either ask the following or get you to fill in a form asking the following....

"You’ll need to ask your new starter about this information - known as an employee starter declaration.

This is their first job since 6 April 2014 and they haven’t received taxable Jobseeker's Allowance, Employment and Support Allowance, Incapacity Benefit, or a State Pension or workplace pension
This is their only job, but since 6 April 2014 they’ve had another job, or have received taxable Jobseeker's Allowance, Employment and Support Allowance or Incapacity Benefit. They don’t receive a State Pension or workplace pension
They’ve got another job or get a State Pension or workplace pension"

If the reply is "got another job or get a State Pension or workplace pension" then the employer must use the BR tax code.

I suspect that this is what the OP answered and so resulted in BR being operated. Can the OP confirm this or advise what their answer was?

To sort now would be best to contact HMRC with full details of likely PAYE and self employed earnings to see what options are open.

[Deleted User]

Definitely filled an form, not sure which one. I don't remember exaclty which questions/answers but definitely provided my national insurance number and said I have another job self employed.
My earnings from last year were £11258. This year my self employment brings around £150 from April to August and £105 from September onwards per week. Sometimes more sometimes less as it is on flexible basis.

[Deleted User]

So it means I am loosing out for having two jobs as I am paying too much tax? Will I receive any tax rebate later on?

chrisbur

Deleted_User wrote: »

So it means I am loosing out for having two jobs as I am paying too much tax? Will I receive any tax rebate later on?

In the end you will pay the same tax as you would on one job as you would on two jobs which earn you the same as one job. You are taxed on what you earn, how many jobs has no bearing on it. As you are at the moment this will probably involve paying extra tax which then gets paid back to you in the future. I think you would be better off paying no tax on your PAYE and then paying the correct tax due in the future on your self assessment. To arrange this contact HMRC as CLAPTON advises, but remember doing this will involve you paying tax after you have received the money so you will need to put some aside as you go along.

zygurat789

chrisbur wrote: »

In the end you will pay the same tax as you would on one job as you would on two jobs which earn you the same as one job. You are taxed on what you earn, how many jobs has no bearing on it. As you are at the moment this will probably involve paying extra tax which then gets paid back to you in the future. I think you would be better off paying no tax on your PAYE and then paying the correct tax due in the future on your self assessment. To arrange this contact HMRC as CLAPTON advises, but remember doing this will involve you paying tax after you have received the money so you will need to put some aside as you go along.

The OP will not be better off either way as he will pay the same. The choice is when it is paid, an accountant would pay as much as possible as late as possible but less financially sophisticated people seem to prefer to have no outstanding debts. The OP could leave things as they are and receive a rebate when the tax return is submitted. Nice to receive a lump sum.

chrisbur

zygurat789 wrote: »

The OP will not be better off either way as he will pay the same. The choice is when it is paid, an accountant would pay as much as possible as late as possible but less financially sophisticated people seem to prefer to have no outstanding debts. The OP could leave things as they are and receive a rebate when the tax return is submitted. Nice to receive a lump sum.

Perhaps a bad choice of words on my part to clarify.
As I said makes no difference to the tax you will end up owing but by having the tax money in your pocket until it has to be paid you can earn a bit of interest on what you will eventually pay and you will not be giving HMRC extra tax to be returned later with no interest added. This is what I meant by being better off paying later rather than having it deducted earlier and getting some back.
So in the end you will pay the same tax but overall can be better off paying the tax later rather than earlier.

Just to repeat the warning " remember doing this will involve you paying tax after you have received the money so you will need to put some aside as you go along." And earn a bit of interest on the money put aside.

I would question whether it is "Nice to receive a lump sum" when the lump sum is your money that you could have had a lot earlier and is paid without any interest being added.

Suarez

zygurat789 wrote: »

The OP will not be better off either way as he will pay the same. The choice is when it is paid, an accountant would pay as much as possible as late as possible but less financially sophisticated people seem to prefer to have no outstanding debts. The OP could leave things as they are and receive a rebate when the tax return is submitted. Nice to receive a lump sum.

Why would you want HMRC to hold onto money that is yours for potentially up to 20/21 months?

zygurat789

Suarez wrote: »

Why would you want HMRC to hold onto money that is yours for potentially up to 20/21 months?

I never said I would want this, you really ought to read posts which you are going to take issue with, you can read, can't you?