Double Income - Emergency Tax

Bobby_Eightball

Hello,

I am after some advice on income tax / emergency tax.

I am just finishing with one employer, The Army and have LOTS of leave to take, which means that after Christmas I won't need to be back in work, even though I will be paid up untill the 1st May 08.

I have been offered a job which starts on the 7th Jan 08, which means that I am effectively working for two employers full time. Are there any complications with this? Is it okay to be on Emergency Tax Code for 4/5 months and is there anything about working for two employers full time?

Any advice or direction on this would be very gratefully received.

Rob

Zazen999

Hi
No complications.

Income 1 will be added to income 2 and tax will be paid on the sum of both; emergency tax is not really emergency tax. It is just the basic rate which, if your rate/code is different will be adjusted by the tax office to a rate that collects the correct tax rate at the end of the year.

I would be in touch with your tax office from the outset so that they are correctly collecting Tax from Income 2 from the start.

Bobby_Eightball

Cheers Zazen,

Will my new employers HR understand what is happening? Will they be okay with not having a P45 for some months?

Sultana

Bobby_Eightball wrote: »

Cheers Zazen,

Will my new employers HR understand what is happening? Will they be okay with not having a P45 for some months?

If there is no P45 they will give you a P46 to fill in where you will declare your other job. You will have to fill in a tax return at the end of the year. You may even end up with a refund.

Bobby_Eightball

Cheers Guys

Thanks for the info.

Have a good Christmas

Rob

And Sultana, what you don't end up in a Christmas Pudding....... ..... sorry.

tigtag02

Zazen999 wrote: »

Hi
No complications.

Income 1 will be added to income 2 and tax will be paid on the sum of both; emergency tax is not really emergency tax. It is just the basic rate which, if your rate/code is different will be adjusted by the tax office to a rate that collects the correct tax rate at the end of the year.

I would be in touch with your tax office from the outset so that they are correctly collecting Tax from Income 2 from the start.

Emergency tax is not basic rate!

OP ~ fill out a P46 at job number two stating that this is your 2nd job. You will be taxed at BR.

On 1st May when your P45 is issued hand it over to job number to so your tax code can then be applied there.

HTH
tigtag

talkinpeace

There is no such thing as "emergency tax"
There is pay taking into account personal allowances (coded 522L generally)
and pay that does not (coded BR1 generally)

tigtag02

talkinpeace wrote: »

There is no such thing as "emergency tax"
There is pay taking into account personal allowances (coded 522L generally)
and pay that does not (coded BR1 generally)

:rotfl: :rotfl: :rotfl:

Of course there is!!

The emergency tax code is 522L!!

Zazen999

Best you check out the HMRC website: I beg to differ about the Basic Rate not being Emergency Tax but anyhowww...


Common tax code letters and what they mean
Code Reason for use
L for those eligible for the basic personal allowance (this is also used as an emergency tax code - read more under the section 'Emergency tax code')
P for persons aged 65 to 74 and eligible for the full personal allowance
V for persons aged 65 to 74, eligible for the full personal allowance and the full married couple's allowance (for those born before 6 April 1935 and aged under 75) and estimated to be liable at the basic rate of tax
Y for persons aged 75 or over and eligible for the full personal allowance
T if there are any other items HM Revenue & Customs (HMRC) needs to review in your tax code
K when your total allowances are less than your total 'deductions' - read more in 'How tax codes are worked out'

tigtag02

Zazen999 wrote: »

Best you check out the HMRC website: I beg to differ about the Basic Rate not being Emergency Tax but anyhowww...


Common tax code letters and what they mean
Code Reason for use
L for those eligible for the basic personal allowance (this is also used as an emergency tax code - read more under the section 'Emergency tax code') This actually contradicts your belief that BR is emergancy tax!!
P for persons aged 65 to 74 and eligible for the full personal allowance
V for persons aged 65 to 74, eligible for the full personal allowance and the full married couple's allowance (for those born before 6 April 1935 and aged under 75) and estimated to be liable at the basic rate of tax
Y for persons aged 75 or over and eligible for the full personal allowance
T if there are any other items HM Revenue & Customs (HMRC) needs to review in your tax code
K when your total allowances are less than your total 'deductions' - read more in 'How tax codes are worked out'

I would like to know where you are getting your info:

Check this out

Clearly states *The Emergancy code remains 522L*

Its a very, very popular misconception that Emergancy Tax is BR but it is just that, a misconception.

talkinpeace

OK
http://www.hmrc.gov.uk/manuals/pommanual/PAYE11015.htm#4
point taken
But what HMRC mean by emergency tax is not what OP meant by it.
nor what it is taken to be in common parlance.