Wrong tax code?

Macc
Macc Posts: 212 Forumite
Part of the Furniture 100 Posts
My girlfriend has 2 part-time jobs. Job A pays around £500 per month, Job B around £350.

Her tax code for job A is 120T and for Job B is 939L.

That is wrong isn't it? Means she is paying tax on job A's wages when really she shouldn't be paying any tax as she's under the threshold?

Comments

  • jem16
    jem16 Posts: 19,560 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Macc wrote: »
    My girlfriend has 2 part-time jobs. Job A pays around £500 per month, Job B around £350.

    Her tax code for job A is 120T and for Job B is 939L.

    That is wrong isn't it? Means she is paying tax on job A's wages when really she shouldn't be paying any tax as she's under the threshold?

    A split tax code as she has is going to be the best thing for her but currently the splits are wrong.

    For job A she would be better with around 600L and job B about 460T.

    She should phone HMRC and discuss her income with each job and they should give her a split that will work better. However it's always going to be a bit difficult as it relies on the correct incomes being known for each job.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    Macc wrote: »
    My girlfriend has 2 part-time jobs. Job A pays around £500 per month, Job B around £350.

    Her tax code for job A is 120T and for Job B is 939L.

    That is wrong isn't it? Means she is paying tax on job A's wages when really she shouldn't be paying any tax as she's under the threshold?

    she should phone HMRC and tell them how she wishes her tax allowance spread between the two jobs

    if the figures quoted are fixed then something like
    630L for the 500 job (6,000 per annum)
    and the 430T for the 350 (4,200 per annum)
  • Macc
    Macc Posts: 212 Forumite
    Part of the Furniture 100 Posts
    edited 20 July 2015 at 2:14PM
    Thanks guys.

    Would she be eligible for a refund at the end of the tax year on the tax she's already paid on Job A's wages since April (assuming her circumstances don't change and her total earned over the year is under the threshold?)

    And if she ends up unexpectedly doing more hours at one job than the other then I guess come the end of the year you get a refund if your total is under the threshold?
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    Macc wrote: »
    Thanks guys.

    Would she be eligible for a refund at the end of the tax year on the tax she's already paid on Job A's wages since April (assuming her circumstances don't change and her total earned over the year is under the threshold?)

    And if she ends up unexpectedly doing more hours at one job than the other then I guess come the end of the year you get a refund if your total is under the threshold?

    assuming her tax codes are cumulative (i.e. there is no WK1 or m1 or noncum after the main tax code)
    then she should get a tax rebate as soon as the new codes are applied; so no need to wait until year end.
  • zygurat789
    zygurat789 Posts: 4,263 Forumite
    Part of the Furniture Combo Breaker
    Macc wrote: »
    My girlfriend has 2 part-time jobs. Job A pays around £500 per month, Job B around £350.

    Her tax code for job A is 120T and for Job B is 939L.

    That is wrong isn't it? Means she is paying tax on job A's wages when really she shouldn't be paying any tax as she's under the threshold?

    I don't think that "wrong" is the correct word. HMRC have even less idea than you as to how much the annual earnings will be come Aprl 2016.
    The responsibility for splitting your tax codes is yours, although in the absence of instructions from you HMRC have made a stab at it.
    Certainly the split as it is, is not the best for you but with annual earnings of £10,200 it wouldn't take much to produce a taxable income
    so you are going to have to keep an eye on the two gross earnings in March because a situation could easily arise where tax is paid on one job with spare allowances on the other and at the year end you have to claim a refund. HMRC may get around to it themselves but why wait what maybe a year.
    The only thing that is constant is change.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350K Banking & Borrowing
  • 252.7K Reduce Debt & Boost Income
  • 453.1K Spending & Discounts
  • 243K Work, Benefits & Business
  • 619.9K Mortgages, Homes & Bills
  • 176.5K Life & Family
  • 255.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.