Underpaid Tax (second job)

ds2016

Hey,

I've just realised that I've potentially underpaid a small amount of tax for my second job. It was a fairly short one-month employment in Feb 2018, but it is only now that I realised that the numbers look wrong. More precisely:

• I was earning £45k at my main job at that time
• I made £550 at my second job
• I was given the BR code at my second job and paid 20% (£110) income tax (through PAYE) according to the P45.

Now, it appears that a total income over £45k should've put me into the 40% band for that year so I've should have paid £220 in tax from that second employment.

I now have a few questions:

• I've never received anything about that from HMRC. Should I contact them anyway?
• If yes then how do I best tell HMRC about this discrepancy?
• How much should I expect to pay in penalties given that this was in the 2017-2018 tax year?

Any help would be very much appreciated.

BoGoF

HMRC will get round to issuing a calculation so don't worry on that front.

There will be no penalty.

The above assumes you do not already complete a Tax Return.

ds2016

BoGoF wrote: »

HMRC will get round to issuing a calculation so don't worry on that front.

There will be no penalty.

The above assumes you do not already complete a Tax Return.

Thanks for your reply. Yes, it's all been going through PAYE. The only other income I had in that year was a casual income of ~£500 which fell under the £1,000 tax-free allowance, so I didn't send a tax return.

Do I understand it correctly that your suggestion is to wait till they find out themselves? Isn't it a bit weird that they haven't yet? It's been more than a year since that tax year ended.

BoGoF

Sorry, I didn't pick up on the fact it was 17/18 and not 18/19. Yeah, probably should have heard by now. Up to you if you want to enquire.

chrisbur

Is it possible that your taxable gross was under £45K eg pension contributions or your tax code higher than the standard 1150L?

unholyangel

Was there an adjustment to rate band on your main jobs tax code? Have you checked the tax paid on your main job is correct?

Its possible you overpaid at your main or had an adjustment to rate band in the tax code for your main job (meaning you paid that extra 20% via your main job).

If you can give precise figures for both jobs and what your tax code contained that year then posters should be better placed to advise on whether you've paid the right amount or not.

Dazed_and_confused

I was earning £45k at my main job at that time

Nowadays with pension contributions so prevalent you often don't pay tax on what you "earn".

If your salary was £45,000 and you contribute 10% to a "net pay" pension scheme then your taxable pay (the bit that goes on your P60) would only be £40,500.