Previous Employer withholding my P45

theoretica

kbraws14 said:

 
Fast forward and I get paid by both at the end of March. My tax code from my previous employer was 1257L and my new employer was the same but as 1257LX.

Based on this, I think you do owe tax - about £200.  In March both employers paid you, and both used a tax code which gave you 1/12 of your annual allowance before income tax is due at 20%.  So (assuming the two March payments were each over about £1000) you had 13/12ths of you annual allowance in that year.  For your tax to work out perfectly one of your employers would have needed to use a tax code of zero for that month.

General_Grant

theoretica said:

kbraws14 said:

 
Fast forward and I get paid by both at the end of March. My tax code from my previous employer was 1257L and my new employer was the same but as 1257LX.

Based on this, I think you do owe tax - about £200.  In March both employers paid you, and both used a tax code which gave you 1/2 of your annual allowance before income tax is due at 20%.  So (assuming the two March payments were each over about £1000) you had 13/12ths of you annual allowance in that year.  For your tax to work out perfectly one of your employers would have needed to use a tax code of zero for that month.

I think you meant to write 1/12.

theoretica

General_Grant said:

theoretica said:

kbraws14 said:

 
Fast forward and I get paid by both at the end of March. My tax code from my previous employer was 1257L and my new employer was the same but as 1257LX.

Based on this, I think you do owe tax - about £200.  In March both employers paid you, and both used a tax code which gave you 1/2 of your annual allowance before income tax is due at 20%.  So (assuming the two March payments were each over about £1000) you had 13/12ths of you annual allowance in that year.  For your tax to work out perfectly one of your employers would have needed to use a tax code of zero for that month.

I think you meant to write 1/12.

Yup!  thanks for noticing.

kbraws14

Thank you for everyone's responses and help in understanding of it all.

The March payment came to about £640 so less than £1000, from my previous employment.

From my understanding, I didn't realise that keeping my BANK post would have meant that I would be keeping my old post, as I thought it would just mean I was on a separate contract since the hours agreed would be different. In a way, I should have made this clearer with my manager.

I kept the BANK post just in case the job in the new Trust falls through. I suppose it was my mistake to have done that.

What I don't understand is how come my previous employment didn't change the tax code, knowing it was my final pay of that year? Is it because from their knowledge from what the manager has told them that I was still employed in that same job role, despite the hours being different (with the role being BANK eventually)?

Savvy_Sue

kbraws14 said:

What I don't understand is how come my previous employment didn't change the tax code, knowing it was my final pay of that year? Is it because from their knowledge from what the manager has told them that I was still employed in that same job role, despite the hours being different (with the role being BANK eventually)?

Your employer doesn't / can't change your tax code without an instruction from HMRC to do so. You can initiate that change by telling HMRC that your situation has changed - you may now have done this.

In your case, if you'd filled in a New Starter form with your new employer stating that you had another job, you wouldn't have had two jobs with the same tax code - the new one would (probably) have used BR.