tax

Martin_o03

Hello this is about tax

Dazed_and_C0nfused

Martin_o03 said:

Hello all, I'm looking for a bit of advice over second job tax.

I have a full-time job I work Monday to Friday, I started a casual second job back In February which I work a few nights a week and weekends. The tax code for the second job is s1256L which I know isn't correct. My tax code for my main job is S1257L. I have checked my online hmrc tax account and my main job is not showing for the 23/24 tax year despite having been paid in April and May, does anyone if any idea why this would be?

Should I be paying 20% tax on my second job? I've been doing quite a bit of overtime in it since I started and the tax deductions do not reflect this, I'm concerned I'm going to get hit with a huge tax bill in the next few months.

When I started the second job I completed the HMRC form and ticked the box indicating that I have another job, should this not have automatically been registered then? Are my employer to fault for this and will this make any difference? What would you advise to do/contact first.

Thank you

Who did you give this to?

It very much sounds like your new employer sent HMRC information showing statement A or B was completed, not C (second job).

You will end up with a bill, think of it as an interest free loan, probably for the previous tax year and again for the current tax year.

Your new employer may be at fault but that doesn't change the fact that it's you will be paying the tax back.

You are likely to pay any tax underpayments in reverse order though.  Tax owed for 2022-23 will normally be collected by a reduced tax code for 2024-25.  But HMRC will try and collect Amy tax owed for 2023-24 throughout the course of the current tax year.

You would be best trying HMRC at 8am sharp.  You will need to tell which job you consider to be your main one and provide as accurate as possible estimates of what you think your P60's will show your taxable pay to be by April 2024 and they can then issue updated tax codes.

If you check your Personal Tax Account you may well be able to see the first Real Time Information data your new (second job) employer submitted.  If this shows tax code 1257L or 1257L non cumulative then that is highly likely to be the employer sending in a statement A or B notification.

It should never show an "S" tax code on the first pay they report as that can only be used on specific instruction from HMRC, they cannot assume an S code applies when you start work.

KingOfSnake

I wouldn't necessarily agree. If you completed the new starter checklist to say you had another job, then the employer is obliged to operate, calculate, deduct and pay HMRC (Reg 14, Reg 21, Reg 49, Reg 69 etc). If they have failed to operate, anything up to 5/4/23 is their liability (HMRC can Reg 80). For 23/24 they can amend the payroll records as in-year adjustment. The employer can appeal (Reg 72 onwards), but the employee can also appeal if there was not reasonable care taken.
It would be different if you just owed the tax (e.g. BR deducted when you were HR) as they would be operating the correct code in the first instance. 

[Deleted User]

Hi,

Dazed_and_C0nfused said:
It should never show an "S" tax code on the first pay they report as that can only be used on specific instruction from HMRC, they cannot assume an S code applies when you start work.

I thought an 'S' signifies Scottish tax rates.

Dazed_and_C0nfused

frugalmacdugal said:

Hi,

Dazed_and_C0nfused said:
It should never show an "S" tax code on the first pay they report as that can only be used on specific instruction from HMRC, they cannot assume an S code applies when you start work.

I thought an 'S' signifies Scottish tax rates.

It does.  But an employer or pension payer can never determines someone's residency status, that is down to HMRC so someone starting a new job without a P45 should never be put on an S code.

It would be 1257L on starter checklist A or B (B being non cumulative) and BR or 0T for statement C.

HMRC then allocate the S if appropriate.