Furlough and work elsewhere?

Bucki

Jeremy535897 said:

sleepyjones said:

Under the Furlough rules you're not, technically, allowed to do any additional work within your contractual hours.
So, if you're furloughed from a 9-5 job, you wouldn't be allowed to work those hours at all, for anyone.  So your other employment hours would need to be after 5pm ... I doubt anyone would investigate this but those are the rules.

They are not the rules. I think this misconception comes from the simple fact that you cannot physically work two jobs at the same time, and it would probably be in breach of the contract of employment. Thousands of people on furlough have taken second jobs, and they don't have to restrict their hours to outside their "normal" hours. It wouldn't make sense. How would you apply such a rule to people furloughed from zero hour contracts, for example?

I am starting the 2nd job soon as my employer said “thats fine but need to come back when we call you back”, I guess there is no offence I am doing right?

there won’t be a penalty charge or whatever?? Should I provide my TAX CODE or will they give me a new one never the less when they use my NI number?

Its 40 hr per week
cheers

sharpe106

If they are happy it fine, although what do you plan on doing when your employer wants you back? As it sounds like it is a full time job you are going to be doing not just a part time one, does your new employer know you are furloughed and can be called back at any point?

Bucki

sharpe106 said:

If they are happy it fine, although what do you plan on doing when your employer wants you back? As it sounds like it is a full time job you are going to be doing not just a part time one, does your new employer know you are furloughed and can be called back at any point?

Of course the new employer does NOT know! It is a warehouse job anyway via agency, temp to possible permanent... and yes, I will have to go back if my current employer calls me back.

I been off since march and I find I have wasted time for nothing and could have worked all this long ... no harm with extra money coming in. 

Provided I do not get fined - hence why asking

sharpe106

Will you have to give notice to the agency when your employer calls you back?

Bucki

No idea ... but at end of the day, will say “going abroad” and they can’t stop me. Worst, they could not pay me for a week worth wage  

Jeremy535897

Bucki said:

sharpe106 said:

If they are happy it fine, although what do you plan on doing when your employer wants you back? As it sounds like it is a full time job you are going to be doing not just a part time one, does your new employer know you are furloughed and can be called back at any point?

Of course the new employer does NOT know! It is a warehouse job anyway via agency, temp to possible permanent... and yes, I will have to go back if my current employer calls me back.

I been off since march and I find I have wasted time for nothing and could have worked all this long ... no harm with extra money coming in. 

Provided I do not get fined - hence why asking

Your employer claims under the CJRS, not you. There is no mechanism to fine you for anything. Your current employer knows the score and is OK, you say. The new employer doesn't, and that's where the problem comes in. You will have to complete a new starter checklist, and you will have to complete one of the three statements. Statement C is the one to tick if you have another job. You have to declare that you have completed the form correctly. If you tick statement A (no other job) instead of statement C, here is some illustration of the consequences:

"Example 2 – Zachery – Ticked box A when he should have ticked box C

Zachery is a nurse. He has been working in the NHS for some time and in 2019 decides to join the nurse ‘bank’ to pick up some extra hours. The nurse bank is a separate organisation within the NHS for payroll purposes to the part that pays him for his normal work. When he joins the ‘bank’ he is asked to complete a starter checklist.

Zachery thinks it is odd that he is asked to complete a starter checklist and just ticks box A – he considers his bank work an extension of his normal work and hasn’t done any other type of work since 6 April.

Because of this, the bank payroll department use code 1250L against his bank earnings. Over the rest of the tax year, Zachery earns £8,000 as a bank nurse – none of which is taxed as it falls below the £12,500 tax-free amount that he has been allocated.

But Zachery has already used the tax-free amount against his normal earnings (£20,000) meaning his tax deductions are £1,500 (£20,000 less £12,500 x 20%). This means at the end of the year, Zachery will receive a bill for £1,600 (that is, £28,000 less £12,500 x 20% less the £1,500 he has already paid).

If Zachery had ticked box C instead of box A, tax at a flat rate of 20% would have been collected on his £8,000 bank nurse earnings (£1,600), which would have given the correct result.

There are a couple of things to note in this scenario:

• We have factsheets that look at how tax codes should work in more depth if you have multiple employments and or if you work through an agency, as things can often get very confusing in these scenarios.
• Sometimes, you might actually have only one job but because your old employer has delayed sending your ‘leaver’ information into HMRC, HMRC think that you have two jobs. If they override your tax code with a BR tax code incorrectly, you will have to contact them to set them straight – any tax overpaid as a result of the incorrect BR code should come back to you eventually!

I can’t pay the tax bill, what should I do?

If you have a tax bill and it is because you incorrectly selected a starter statement, then there is not much you can do about it and you will have to agree with HMRC how you will pay it. It would be a different situation if, for example, you started a new job in 2019/20 and gave your new employer your starter checklist that indicated that code BR should be used (as it was a second job), however they did not use the code – they just put you on a standard 1250L code. This would be an ‘employer error’ and HMRC should chase them for the unpaid tax first. (Note, it is not an ‘employer error’ if you select the incorrect option on the starter checklist.)

If collection of the underpayment via your PAYE code or payment directly to HMRC will be difficult for you financially, contact HMRC as soon as possible to discuss. You may be able to arrange to have the tax coded over a longer period or to pay in instalments. There may well be an interest charge if you spread the payments."

Bucki

Hello Jeremy

thanks for the detailed info.
i had to re-register at the agency due to some errors in their system. This time I clicked C (second job) but didnt tell the agency ...

i am starting work on Tuesday, I hope they won’t notice it and start pay me correctly otherwise would end up paying too much tax?

Jeremy535897

More likely you would pay too little tax (you would get a personal allowance against each job).

Bucki

Jeremy535897 said:

More likely you would pay too little tax (you would get a personal allowance against each job).

Sorry, am i committing an offence ?? What does it mean - personal allowance against each job?

The second job is £9 p/h at 40hrs a week. 

So have I selected C wrong? Just hopping HMRC or agency wont call back and saying “ey you paying too little tax and have two jobs and own us money..”

bottom line, i wont be doing 2nd job for long anyway ...

Jeremy535897

In the example I quoted, it said "Zachery ticked box A when he should have ticked box C". You said you have ticked box C, because you will have two jobs at once, like Zachery. You have done the correct thing, but if you earn less than £12,500 from your main job in 2020/21, you may overpay tax, although you will be able to claim it back if you have.