Tax Question

AsifM068

Hi forum,

I will be shortly temping in two different roles. Both roles will be paying my wages via PAYE.

For the purposes of tax compliance, do I need to inform HMRC please as I understand my tax code may be affected?

Many thanks

Marcon

AsifM068 said:

Hi forum,

I will be shortly temping in two different roles. Both roles will be paying my wages via PAYE.

For the purposes of tax compliance, do I need to inform HMRC please as I understand my tax code may be affected?

Many thanks

Not if you're an employee being paid under PAYE. You may need to fill in a new starter form for each role, assuming you don't have a P45 (if you do, give that to one new employer and fill in a new starter form for the other).

AsifM068

Marcon said:

AsifM068 said:

Hi forum,

I will be shortly temping in two different roles. Both roles will be paying my wages via PAYE.

For the purposes of tax compliance, do I need to inform HMRC please as I understand my tax code may be affected?

Many thanks

Not if you're an employee being paid under PAYE. You may need to fill in a new starter form for each role, assuming you don't have a P45 (if you do, give that to one new employer and fill in a new starter form for the other).

Many thanks for this friend; would you know if my personal tax allowance apply to both jobs or would I pay full tax (40%) on the second role - hope this makes sense?

Savvy_Sue

Do you know what you're being paid in each job? 

Your personal tax allowance has to be split between both jobs, but how they do it depends on whether all the tax free allowance gets used up in one role. 

You say you're temping, does this mean what you earn will vary from month to month? 

AsifM068

Savvy_Sue said:

Do you know what you're being paid in each job? 

Your personal tax allowance has to be split between both jobs, but how they do it depends on whether all the tax free allowance gets used up in one role. 

You say you're temping, does this mean what you earn will vary from month to month? 

Hi

Temp role 1: 14 hours x £12.00 per week
Temp role 2 : 4 to 10 hours x £ 16.00 per week

Both roles will be paying my wages PAYE.

flossymcfly

AsifM068 said:

Hi

Temp role 1: 14 hours x £12.00 per week
Temp role 2 : 4 to 10 hours x £ 16.00 per week

Both roles will be paying my wages PAYE.

You have two options, allocate your full personal allowance to role 1 and pay Basic Rate (20% unless you have other income from somewhere that pushes you into the higher earner bracket) or you can split your allowances to have £9000 at role 1 and the remainder at role 2. This can complicate things if you do more hours one week as you may still have to pay tax as your personal allowance will be lower

AsifM068

flossymcfly said:

AsifM068 said:

Hi

Temp role 1: 14 hours x £12.00 per week
Temp role 2 : 4 to 10 hours x £ 16.00 per week

Both roles will be paying my wages PAYE.

You have two options, allocate your full personal allowance to role 1 and pay Basic Rate (20% unless you have other income from somewhere that pushes you into the higher earner bracket) or you can split your allowances to have £9000 at role 1 and the remainder at role 2. This can complicate things if you do more hours one week as you may still have to pay tax as your personal allowance will be lower

Thank you for this;

If my full personal allowance applies to role 1, will 40% tax apply to role 2 ?

flossymcfly

AsifM068 said:

Thank you for this;

If my full personal allowance applies to role 1, will 40% tax apply to role 2 ?

Not unless your total income means that you fall into the higher earner bracket - usually around the 50k mark depending on allowances and deductions

Dazed_and_C0nfused

Given that neither job is likely to pay more than the Personal Allowance (£11,310 or £12,570) then HMRC are likely to split your tax code allowance.

Say job 1 looks like you will earn £9k then any tax code allowance above that will be allocated to job 2.

Assuming you haven't applied for Marriage Allowance this could well be tax codes,

Job 1 = 900L (no tax on first £173/week)
Job 2 = 357T (no tax on first £68/week)

You are free to change that split if something different suits you better.