Help! Can anyone solve this HMRC mystery?

sammyjammy

LittleVoice wrote: »

I don't know how you gained that experience. It sounds as though your main job is expected by HMRC to just reach the upper limit for paying 20% tax and that they advise the additional employer(s) to apply 40% on your earnings there.


That is not what would happen to the OP because their earnings are not at that level.


For most people who have a main job which will use up their personal tax allowance in the year and who have some other PAYE employment, the whole of their personal allowance is used at the main employer. They advise the secondary employer(s) that they have this other job, and the secondary job(s) is/are taxed at 20% on the lot.

You beat me to it, I've had a number of second jobs and never paid 40% tax.

theoretica

redandblue wrote: »

How strange. I would have thought there was a way for HMRC to charge me tax for the income I actually earn in real time, rather than making false assumptions on past and future salary.

For many people making assumptions works out simplest - if you earn 20k a year it would be a pain to pay no tax for the first 6 months and then lots for the next. There are ways of deducting tax which work out better for people in your situation than what you have, but you need to know to set them up.

redandblue

Thanks theoretica. I got through to HMRC at 8.20am this morning and it turns out it was a 'computer error'. The woman I spoke said "I wish the computer would stop doing this!". She faxed my first employer with a new code while I was on the phone. As I thought, I shouldn't be paying any tax because I haven't and won't be earning over 10K in the financial year 2014 - 2015. Result!