Filled out Starter Checklist incorrectly; what will happen

ojloverman1

Hi there,
So currently I am paid by Company A and on tax code 1197L according to my online tax account. I am starting a 2nd job with Company B and have filled in a Starter Checklist with them. In the checklist I checked option B in Employee Statement "this is now my only job". However, I realise now that there will be some overlap, and I will be paid by Company A for some time whilst I work for Company B. What will happen in this situation with my tax codes? It would be helpful for me if Company A are not alerted to the fact I have started work for Company B, could this happen via a tax code change?

chrisbur

ojloverman1 said:

Hi there,
So currently I am paid by Company A and on tax code 1197L according to my online tax account. I am starting a 2nd job with Company B and have filled in a Starter Checklist with them. In the checklist I checked option B in Employee Statement "this is now my only job". However, I realise now that there will be some overlap, and I will be paid by Company A for some time whilst I work for Company B. What will happen in this situation with my tax codes? It would be helpful for me if Company A are not alerted to the fact I have started work for Company B, could this happen via a tax code change?

Just having an overlap of working may not cause any problems; it is if both employers pay you during the same tax month.  A tax month runs from 6th of one month to 5th of the next.  Even if you have an overlap of payments it is not really a problem it just results in you under-paying tax in that month.  The under-payment will correct itself when your new employer operates your P45 and the under-payment will be deducted.  This will look like a bit of a bad month but it is the result of you getting an extra tax allowance for that month, which you were not really entitled to.
There will be no need for a tax code change the correction will be done (if any is needed) by your normal tax code.  There may be other reasons for a tax code change for example you had an allowance or benefit in one job that does not apply in the other, but these will be sorted when you advise HMRC of the details, and only your new employer will be advised of any code change.
You can tell if there will be any tax owing by comparing the month number on your last old payslip (or P45) with the month number on your first new payslip.  So if say they both have the same month eg month 5 or unlikely the old has a month higher than the new then there is an overlap and there will be a correction when the P45 is applied.

EDIT  I assumed above that this was just a short overlap while changing jobs but it could be that this is a somewhat longer overlap.  Perhaps the OP could give more details about this overlap.

Dox

ojloverman1 said:

It would be helpful for me if Company A are not alerted to the fact I have started work for Company B, could this happen via a tax code change?

I think employees vastly overestimate the amount of time payroll staff spend looking out for tax code changes just in case an employee has another job.... Even if your Company A tax code changes (unlikely), it is unlikely to be noticed, let alone 'researched'.

[Deleted User]

In some companies it's instant dismissal if you go against the contract, and don't inform them if you have a second job. Therefore, I wouldn't underestimate the possibility of some 'thorough research' if they get so much as a hint.

ojloverman1

EDIT  I assumed above that this was just a short overlap while changing jobs but it could be that this is a somewhat longer overlap.  Perhaps the OP could give more details about this overlap.

The overlap could be in the order of months. My old employer could also be looking out for tax code changes due to the circumstances that have caused the overlap to occur. Is there a way to make sure that old employer does not receive any tax code changes and it is all handled through the tax code with the new employer? Then when the overlap is finished I can change my tax code with the new employer?

TELLIT01

As long as you are not actually working for employer A there shouldn't be a problem.  Sorting out financial aspects after leaving isn't the same as working for.

Masomnia

Your tax code can change for all sorts of reasons anyway so I wouldn't worry about it too much unless they're specifically worried about you going to a competitor and it would be a breach of any restrictive covenants you'd signed.

Even so it's unlikely that anyone apart from the person processing the payroll would even know.

chrisbur

ojloverman1 said:

EDIT  I assumed above that this was just a short overlap while changing jobs but it could be that this is a somewhat longer overlap.  Perhaps the OP could give more details about this overlap.

The overlap could be in the order of months. My old employer could also be looking out for tax code changes due to the circumstances that have caused the overlap to occur. Is there a way to make sure that old employer does not receive any tax code changes and it is all handled through the tax code with the new employer? Then when the overlap is finished I can change my tax code with the new employer?

All I can suggest is that you contact HMRC explain about the overlap and ask them to issue a BR code to your new employer, or if your earnings take you into the higher band a D code.