PAID 4 WEEKS IN AREARS BUT START NEW JOB PAID WEEKLY

Tjoyce09

Hi all looking for some help

I have a job I am leaving and am.paid 4 weeks in arrears.  Issue is my new job is paid weekly and as a consequence I will be paid 2 x lots of payments at same time ( for 4 x weeks)  I am concerned about paying extra tax due to these being paid at same time. Is there any way around this , to save on tax ? 

Was really looking forward to benefiting from the 4 extra weeks pay, but don't want to be taxed and lose out. 

maisie_cat

You will pay tax on your pay, there is no way to avoid it so you wont lose out. What may happen is that both payroll departments apply the personal allowance so you'll actually underpay tax. Given how late in the tax year we are you'll probably get a tax demand or a change in tax code next year.

Tjoyce09

maisie_cat said:

You will pay tax on your pay, there is no way to avoid it so you wont lose out. What may happen is that both payroll departments apply the personal allowance so you'll actually underpay tax. Given how late in the tax year we are you'll probably get a tax demand or a change in tax code next year.

Also another issue is I may not get a p45 until I.leave the current role.  If paid 4 weeks in arrears this could be middle of march 2024. Would this mean I would be on an emergency tax code with the new employer ?

penners324

The emergency tax code is 1257L.

Fill in the new starter form at the new place and hand over the p45 when received.

The tax will sort itself out eventually 

chrisbur

Tjoyce09 said:

maisie_cat said:

You will pay tax on your pay, there is no way to avoid it so you wont lose out. What may happen is that both payroll departments apply the personal allowance so you'll actually underpay tax. Given how late in the tax year we are you'll probably get a tax demand or a change in tax code next year.

Also another issue is I may not get a p45 until I.leave the current role.  If paid 4 weeks in arrears this could be middle of march 2024. Would this mean I would be on an emergency tax code with the new employer ?

The choice will be yours how you do this either way may not be perfect and could result in some adjustment being made later in the tax year or possibly next tax year, so assuming not a 40% tax payer....
You should be asked to make a new starter declaration along the lines of A First job this tax year, B Have had other job(s) this tax year but now this is my only job, C I have another job or taxable income.
If you select B you will be put onto the emergency tax code and almost certainly get tax allowance from old and new job so underpay tax and need some adjustment later.
I you select C you will be taxed on BR code and pay tax on all you earn in the new job so if your code etc is sorted by the time this overlap of tax periods has ended tax will be about correct but if it goes on for longer you will be overtaxed.  Again may be sorted this tax year possibly not till next.

If you go for C probably best to explain to new employer you are doing this to avoid being undertaxed due to tax periods overlap and you do not actually have a second job while working for them.