Is this tax evasion?

Gulash

My second job employer does not keep my tax, they only keep the NI. Is this tax evasion? I told them that I am 1060L, but they still give me the full gross amount minus the NI. Any advice?

xylophone

You should have a tax code for your second job - contact HMRC.

LittleVoice

Gulash wrote: »

My second job employer does not keep my tax, they only keep the NI. Is this tax evasion? I told them that I am 1060L, but they still give me the full gross amount minus the NI. Any advice?

How much do you earn per week or per month in this second job?


How much do you earn in a year in your first/main job?

bowlhead99

Gulash wrote: »

My second job employer does not keep my tax, they only keep the NI. Is this tax evasion? I told them that I am 1060L, but they still give me the full gross amount minus the NI. Any advice?

Your tax code is 1060L for your first job because in that job you can earn £10600 before paying tax and they'll give you the benefit of that over the course of the year when working out your take-home.

But in your second job you can't also earn £10600 before paying tax, otherwise you'd have £21800 total untaxed. And this would come back to bite you at the end of the year.

So, your tax code can't also be 1060L for your second job. Two jobs needs two tax codes and HMRC will be able to give you a second one if you ask.

patanne

Do something about this soon as the longer you leave it the more tax you will owe.

Pennywise

What is the "second" job? There are some occupations (rare) where it would be right to deduct just NIC on wages and leave the gross to be subject to tax on a self assessment tax return similar to self employment. Would be good to clarify that these obscure rules don't apply here.

TheCyclingProgrammer

No tax evasion going on here, though you may end up owning tax at the end of the tax year unless you get this sorted as others said.

It sound like you're earning over the earnings threshold for NI in your other job but as you've been put on the wrong tax code for your second job (from the sounds of it) no tax is being deducted.

You should normally be on a BR tax code for your second job unkess you split your tax code between your jobs. It sounds like your other employer has put you on an emergency tax code, did you tell them it was your second job?

Gulash

I am on 20k on my first job and 8.5k on my second. Is it okay to continue not paying tax, and put the money in a high interest bank account and pay the tax at the end of the year, so that I will benefit from the interest? Or they will ask me interest for the tax?

Darksparkle

Gulash wrote: »

I am on 20k on my first job and 8.5k on my second. Is it okay to continue not paying tax, and put the money in a high interest bank account and pay the tax at the end of the year, so that I will benefit from the interest? Or they will ask me interest for the tax?

What reason have they given for not deducting tax?

Gulash

Darksparkle wrote: »

What reason have they given for not deducting tax?

They use my 1060L code (not sure where they took it from) and they told me that HMRC needs to notify them if I have different code.

jem16

Gulash wrote: »

They use my 1060L code (not sure where they took it from) and they told me that HMRC needs to notify them if I have different code.

When you started your 2nd job, did you inform them that you already had another job?

You should have been asked to complete a New Starter's checklist where you would have chosen "I already have another job".

If the above did not happen you really should have been put on a 0T tax code and not a 1060L ( emergency or otherwise ) tax code.

You should be on a BR tax code for the 2nd job and you will owe 20% tax on the whole lot. HMRC should catch up with this and send the employer a new tax code but you will end up with an underpayment so best start putting away that tax. HMRC will not add on any interest though.