having 2 jobs. issues with tax codes

kobracai

Hello, I have 2 jobs since last year


first job with employer P. is 37.5 hours a week, Monday to Friday, fixed hours, taxed 1191L, last year the tax code was a lot higher (I think it was 1342L but not sure). started this job in 2013


second job with employer A. is zero hour contract, some weeks I work 22 hours a week, some weeks zero, some weeks only 11 hours etc.... tax code is 1339L, started this ad hoc employment in 2017


shouldn't employer A be on a BR rate? how come my main job has a much lower tax code than my second job? it should be BR in theory. I wrote to HMRC and phoned them too to explain this 2 weeks ago but nothing has changed


if I ask them to put employer A on a BR rate, will HMRC increase my tax code with employer P. ? I received my weekly payslip with P, this morning and it's £46 less a week, that's almost £200 earned less a month , it's quite a big blow on my earnings


anyone know what to do? is there a specific office to contact? I wrote to the address HM Revenue and Customs Pay As You Earn and Self Assessment BX9 1AS United Kingdom but still hasn't been sorted out


thanks

kobracai

forgot to mention, I got a notice a while ago that I underpaid £1600 in taxes since 2014 and I need to pay them back through my tax but I am not sure if this is linked to having 2 jobs?



I doubt it since they told me I underpaid since 2014 and I started the second job in 2017


(the underpayment notice is definitely not a scam as I called HMRC and they confirmed the figure)


I have just used https://www.thesalarycalculator.co.uk/hourly.php


at employer P. my hourly rate is £13.25 for 37.5 hours a week and a tax code of 1191L, that would bring a take home pay of £403.12, however on my new payslip with the exact same figures I only got paid £357.88 !


any advice?

chrisbur

kobracai wrote: »

forgot to mention, I got a notice a while ago that I underpaid £1600 in taxes since 2014 and I need to pay them back through my tax but I am not sure if this is linked to having 2 jobs?



I doubt it since they told me I underpaid since 2014 and I started the second job in 2017


(the underpayment notice is definitely not a scam as I called HMRC and they confirmed the figure)


I have just used https://www.thesalarycalculator.co.uk/hourly.php


at employer P. my hourly rate is £13.25 for 37.5 hours a week and a tax code of 1191L, that would bring a take home pay of £403.12, however on my new payslip with the exact same figures I only got paid £357.88 !


any advice?

Sounds like tax code BR has been used; have another look at your payslip to check the code, if it says 1191L then check the tax figure is it 20% of the full pounds paid as taxable gross.

Either way you will be under-taxed if you have a tax code like these with each employer. What did you advise on your starter declaration with the zero hours employment.

kobracai

chrisbur wrote: »

Either way you will be under-taxed if you have a tax code like these with each employer. What did you advise on your starter declaration with the zero hours employment.

I am not sure what I declared but I told them I would only be available on weekends as I work midweek

kobracai

chrisbur wrote: »

Sounds like tax code BR has been used; have another look at your payslip to check the code, if it says 1191L then check the tax figure is it 20% of the full pounds paid as taxable gross.

mmmh how is it possible that a BR has been used? Not sure what you mean here?

the main job has 1191L, the second job has 1339L (these are current payslisps)
last year the main job was I think 1334L (second job same as now, it hasn't changed) or something similar and I got taxed what seems to be the correct amount according to thesalarycalculator

paulharding150

In a 'normal' situation

Job P should have the tax code 1185L &
Job A should have the tax code BR.

That would mean the first £11,850 you earn in Job P is tax free and you pay 20% on everything else (until you hit a higher tax band which I doubt you will). The BR (basic rate) code would mean you have no tax free allowance and pay 20% of everything you earn from Job A.

Your situation is complicated by the fact you underpaid your tax in 2014, which would explain the different codes. The odds are your initial underpayment arose from having two jobs - but that happened and there's nothing you can do about it now. HMRC are recouping that tax you should have paid in 2014 out of your earnings today (happens to lots of people don't worry).

If your pay from Job A was less than you were expecting it's because you paid more tax to reduce the amount you owe.

It might be worth finding out from HMRC how much you owe and if they are planning on recouping it all in this financial year. You'll need to bear that in mind should you leave Job A at anypoint this year and not take up a second job.

kobracai

paulharding150 wrote: »

It might be worth finding out from HMRC how much you owe and if they are planning on recouping it all in this financial year. You'll need to bear that in mind should you leave Job A at anypoint this year and not take up a second job.

yes I underpaid £1600 since 2014 unfortunately so that's ok, it's obviously in their right to do it

kobracai

paulharding150 wrote: »

That would mean the first £11,850 you earn in Job P is tax free and you pay 20% on everything else (until you hit a higher tax band which I doubt you will).

I am still not sure why HMRC don't change job A. since I told them both on the phone and in writing it's only a second job

also the taxes on job P work at around 28% of my earnings according to the payslip I got today, seems like a lot considering I only get paid £13.25 per hour

kobracai

paulharding150 wrote: »

Your situation is complicated by the fact you underpaid your tax in 2014, which would explain the different codes. The odds are your initial underpayment arose from having two jobs - but that happened and there's nothing you can do about it now. HMRC are recouping that tax you should have paid in 2014 out of your earnings today (happens to lots of people don't worry).
.

My second job only started in 2017 though, so not sure how these 2 things can be related

chrisbur

kobracai wrote: »

mmmh how is it possible that a BR has been used? Not sure what you mean here?

the main job has 1191L, the second job has 1339L (these are current payslisps)
last year the main job was I think 1334L (second job same as now, it hasn't changed) or something similar and I got taxed what seems to be the correct amount according to thesalarycalculator

The figures you gave are about correct if a tax code of BR was used.
What are the full details from this payslip, ie taxable gross, tax paid, tax code and basis, taxable gross to date and tax paid to date?

paulharding150

kobracai wrote: »

I am still not sure why HMRC don't change job A. since I told them both on the phone and in writing it's only a second job

also the taxes on job P work at around 28% of my earnings according to the payslip I got today, seems like a lot considering I only get paid £13.25 per hour

Look at what you earn in total between your two jobs and how much tax (and back tax) you pay and then it won't seem like so much.