National Insurance - 2 jobs

purdyoaten

1) The second employer is obliged to inform HMRC that your wife has another job.

2) Your wife could not provide the second employer with a P45 (as she is not leaving her main employer). Under those circumstances any employer is obliged to deduct tax without personal allowances being granted.

Jonah01

Hi,

My wife has started her new second job.

Her earnings are

job 1 £5500
job 2 (new job) £8000

Shall i just ask HMRC to split her tax free allowance across the two?
Is there a specific way it should be done?

I am thinking a tax code for job 1 of 555L and a 510T for job 2. So any tax owed would be paid from the job 2 salary.

Cheers

CLAPTON

Jonah01 wrote: »

Hi,

My wife has started her new second job.

Her earnings are

job 1 £5500
job 2 (new job) £8000

Shall i just ask HMRC to split her tax free allowance across the two?
Is there a specific way it should be done?

I am thinking a tax code for job 1 of 555L and a 510T for job 2. So any tax owed would be paid from the job 2 salary.

Cheers

are these figures per annualise pay
or are they the actual pay she expected between 6th April 2105 and 5th April 2016?

Jonah01

Hi,

job 1 is £5500 gross from 6th April 2105 and 5th April 2016
job 2 is £8000 for the remainder of the year.

So her total annual gross pay for this year will be around 13500.

Hopefully that makes sense.

Thanks

molerat

I would split the tax codes 549 on job 1 and 511 on job 2 to maximise the extra £9 tax free on both wages (every little helps). She will be paying NI on job 2.

Jonah01

Thanks for your reply. Yeah i got my tax codes wrong.

For arguments sake the tax codes could be split any which way, she would still pay the same amount of tax? Or is that a wrong assumption?

job 1 is slightly variable and the annual pay might not be exactly £5500. Won't be too much different though.

Good point about the NI as the thresholds aren't based over the year she will pay it.

molerat

It is probably best to set the codes to pay tax on both jobs which will ensure the correct amount is collected and none of the allowance is wasted (one of mine pays 20p per month !). I hope she is making the most of her tax free savings allowance as well

Jonah01

I suppose if any is wasted then HMRC would refund any overpaid tax at the end of the year. Much better to have to not rely on that though.

I currently have the bank paying her portion of our saving interest as net (joint account). I suppose I can leave it like this with the new upper limit of £15600?

I should really have an account setup in her name and avoid all tax on our interest.

I was reluctant to do this with the new rule regarding interest up to 1k being tax free next year? If this is still happening.

Thanks for your help with this.