moving jobs and 2 salaries overlap - advice please

Catslovelycats

Hi. I finish a job and start a new one in April. The pay in my new job is significantly lower than my current job. I'm wondering what might/will happen to my 2 salaries in April. I  assume I will be clobbered for 50% tax in my 2nd salary as I'm already on that in my current salary. But when I'm paid in May, do I still need to be prepared to get clobbered 50% again (I will only fall within the 20% range from then on). I will phone HMRC about this but wondered if anyone knows about how this works, especially as it's the start of a new tax year. Thanks.

Dazed_and_C0nfused

Catslovelycats said:

Hi. I finish a job and start a new one in April. The pay in my new job is significantly lower than my current job. I'm wondering what might/will happen to my 2 salaries in April. I  assume I will be clobbered for 50% tax in my 2nd salary as I'm already on that in my current salary. But when I'm paid in May, do I still need to be prepared to get clobbered 50% again (I will only fall within the 20% range from then on). I will phone HMRC about this but wondered if anyone knows about how this works, especially as it's the start of a new tax year. Thanks.

Are you expecting to be able to supply your new employer with your P45 in time for when they make their first payment to you?

If not they will use the emergency tax code (1257L) and operate this on a non cumulative basis the first time they pay you.  Meaning the first £1,048 will have no tax deducted at all.

Catslovelycats

Dazed_and_C0nfused said:

Catslovelycats said:

Hi. I finish a job and start a new one in April. The pay in my new job is significantly lower than my current job. I'm wondering what might/will happen to my 2 salaries in April. I  assume I will be clobbered for 50% tax in my 2nd salary as I'm already on that in my current salary. But when I'm paid in May, do I still need to be prepared to get clobbered 50% again (I will only fall within the 20% range from then on). I will phone HMRC about this but wondered if anyone knows about how this works, especially as it's the start of a new tax year. Thanks.

Are you expecting to be able to supply your new employer with your P45 in time for when they make their first payment to you?

If not they will use the emergency tax code (1257L) and operate this on a non cumulative basis the first time they pay you.  Meaning the first £1,048 will have no tax deducted at all.

Thanks. There is likely to be an overlap meaning I get my new salary before my 'old' one and so I'm not expecting to get the P45 in time. 

Dazed_and_C0nfused

Catslovelycats said:

Dazed_and_C0nfused said:

Catslovelycats said:

Hi. I finish a job and start a new one in April. The pay in my new job is significantly lower than my current job. I'm wondering what might/will happen to my 2 salaries in April. I  assume I will be clobbered for 50% tax in my 2nd salary as I'm already on that in my current salary. But when I'm paid in May, do I still need to be prepared to get clobbered 50% again (I will only fall within the 20% range from then on). I will phone HMRC about this but wondered if anyone knows about how this works, especially as it's the start of a new tax year. Thanks.

Are you expecting to be able to supply your new employer with your P45 in time for when they make their first payment to you?

If not they will use the emergency tax code (1257L) and operate this on a non cumulative basis the first time they pay you.  Meaning the first £1,048 will have no tax deducted at all.

Thanks. There is likely to be an overlap meaning I get my new salary before my 'old' one and so I'm not expecting to get the P45 in time. 

In which case your new employer should ask you to complete a new starter declaration and that is where they will get the tax code from.

From what you have posted you would tick statement B.

Once HMRC receive your final pay details from your old employer they will check your tax code and issue a fresh one.

Normally you owe tax in this situation (two lots of tax code allowances in one month) but if you paid higher rate tax at the old job and won't be at the new one this will mitigate this.

penners324

No need to contact hmrc, as above fill in the relevant form on your first day.

The taxes will work themselves out in the 2nd month