Help : New Employment while getting paid from the previous employer

Kouchris

Hello Everyone,

I have taken the leap onto online forums for the first time. I have been reading them for a while but i never took the time to ask questions myself. I thank you all for the information you have provided and the help you have offered.

A bit of background story

Right, to the main subject. I have recently been fired from my previous role due to "poor performance". As i am sure some of you might have had similar experiences this is a really hard process to go through and getting a new job is really stressful.

After beeing fired i was advised by a number of different people (including the employer that fired me) to not disclose that i was fired from my role as this will make it a lot harder to secure a new role.

Main Points

Thank fully i have secured a new role quite fast and i am now working for a new company and will hopefully do better this time around.

• I was let go end of November and will be paid until and including December. My previous employer could not have people that were fired working in the department so i will get paid for the whole notice period (December) without working.
• When i started with the new employer i did not disclose that i was let go.
• When i filled in the the P46. I declared that this is my only employment. As it practicly is.
• Practically, i will get paid by 2 employers at the end of December. And, again, theoretically, this is not my only employement as of December as i will get paid for 2 jobs. Even if i work only one.

My concerns

• Have i made a mistake filling in the form that this is my only employement?
• Will i be using 2 tax codes? one emergency one for my new employment (as i filled in that i dont have a P45, Which i dont.) and another normal tax code from my previous employemnt as this would be a normal-last payment?
• Will my current employer know that i received payment for another employment for December? Maybe the tax and NI get a bit weird looking? I read about Deffered NI on gov.uk, could this be something that will raise a flag with my payrol? As you can understand it will look weird since they think i quit my previous employment on november and therefore i should have been paid for my last month.

I know that this is a lot to ask at one post but i am really in a hard spot. I really want to keep this role and do well. I am not fond of coming clean with my current employer, as this will complicate relationships and the trust they have in me.

I am not overly concerned with the tax i will pay or about tax fraud as i have not hidden anything from HMRC. HMRC and the end of the day will see my earnings under my tax code and will tax me for the right amount - im sure.

Thank you all in advance for your kind help and assistance. I deeply apologize for the long post.

Kindest Regards,
Chris

duchy

Yes it is fine.
You only have one employer , the money you get from employer 1 is not payment for December but payment in lieu of notice.

There will be a slight discrepancy in tax paid but that will be adjusted by the tax office and your employer won't see anything that would tell them you were fired. Adjustments like this are very common, many companies don't allow employees to work once they have handed in their notice anyway and pay them for their notice period so your situation is common.

Kouchris

Thank you Duchy,

This was the fastest reply imaginable. :T

I guess then the payment for my previous employment will not be under PAYE? I was afraid i will have 2 tax codes for PAYE. Or is the tax code applied to the whole Payslip.

Also i was scared that the NI will be very low for the new employer - because the old one will pay NI as well.

Sorry if my question is silly. i dont have a good grasp of how the tax system works.

Thank you ever so much for taking the time to put my paranoid mind at ease.

Kind Regards,
Chris

Kouchris

On a different note. I think this site will become my go to place for tax and government information. I hope that i will be able to contribute back to the fellow members.

Kouchris

Hello Again,

I have found this on XpertHR co uk . it concerns the PILON handling.I have indeed had a cause about PILON in my contract, and according to this, if reliable. The payment that will be made will possibly be wages.

I know that this is the internet and not every piece of information is true or accurate but i thought i should post it.

If an employer pays an employee in lieu of notice, is the payment taxable?
Whether or not a payment in lieu of notice is taxable depends on the terms of the employee's contract. If the contract of employment contains an express clause allowing the employer to pay the employee in lieu of notice, the payment will represent wages and will, therefore, be subject to tax and national insurance contributions. If the contract of employment does not contain an express payment in lieu of notice clause, but the employer's custom and practice is always to pay in lieu, such a term may be implied into the contract of employment and any resulting payment in lieu may be taxable. However, if there is no payment in lieu of notice contract clause, and there is no risk of there being one implied, the payment will be regarded as compensation for a breach of contract (the failure to give the employee his or her contractual notice) and the first £30,000 will be tax free.

Where a payment is regarded as compensation, the question arises of whether the employer should pay the net or gross sum to the employee. Strictly speaking the employer is obliged to pay the employee only the net amount to represent the amount that he or she would have received but for the breach of contract by the employer.

However, many employers will make a gross payment to the employee as a gesture of goodwill. After all, if the employer had dismissed the employee without breaching the contract, the employer would be out of pocket to the same extent; it would, however, have paid the tax to HM Revenue & Customs.

The Government has announced that changes to the rules on taxation of termination payments will come into force from April 2018. Under proposals on which it has recently consulted, all payments in lieu of notice, whether contractual or not, will be subject to tax and national insurance. The £30,000 exemption will not apply to any payments in lieu of notice.

Should this be true. if my employer does notice the something weird, Does anyone have any suggestions on how i can answer the question about it without raising any flags? I know that this is now beyond facts but i would like to be prepared. How would you answer this?

Thank you in advance,
Kind Regards,
Chris

duchy

No , wages in lieu of notice or not are taxable.
Your new employer however will not see any figures from the payment, they will see a change in tax code but that can come from anything in the last tax year and certainly isn't a flag you were sacked. Stop over thinking things.

Kouchris

haha

ok ok i ll stop thinking now. i ll probably stress until the payment date but i cant do anything really

Thank you again Duchy.

Regards,
Chris