Worried about Tax, HMRC thinks I have 2 roles

dummyfiss

Hi everyone,

I left my job late last year to take some time off and R&R. 

I accepted an offer with company A in late January. I however got an offer from company B start of February and accepted that one, meaning I declined company A’s offer before start-date.

Issue is, I got signed up on payroll for company A despite not working a day there, and of course I am working with company B now and obviously signed up for payroll there too.

I reached out to HMRC and I am indeed signed under company A on their records. I requested a P45 as well as putting a temporary halt to company A’s employment in HMRC’s side.

I’m worried about what my first paycheck is going to look in terms of tax, would I be taxed double even though I only have one job and one salary? What should I expect?

I have a commitment right on payday and I’m genuinely wondering if I will be able to make it with the paycheck I will receive, in case it has a gigantic amount of tax.

Dazed_and_C0nfused

dummyfiss said:

Hi everyone,

I left my job late last year to take some time off and R&R. 

I accepted an offer with company A in late January. I however got an offer from company B start of February and accepted that one, meaning I declined company A’s offer before start-date.

Issue is, I got signed up on payroll for company A despite not working a day there, and of course I am working with company B now and obviously signed up for payroll there too.

I reached out to HMRC and I am indeed signed under company A on their records. I requested a P45 as well as putting a temporary halt to company A’s employment in HMRC’s side.

I’m worried about what my first paycheck is going to look in terms of tax, would I be taxed double even though I only have one job and one salary? What should I expect?

I have a commitment right on payday and I’m genuinely wondering if I will be able to make it with the paycheck I will receive, in case it has a gigantic amount of tax.

If you mean with company B then that all depends on how you completed the new starter declaration for that employer.

HMRC are not involved until after the first payment.

The possible tax codes are 1257L (the emergency code), BR or 0T. 

But 0T is only used if you haven't complied with the new starter process (or you have a rubbish employer/payroll section).

dummyfiss

Yeah I mean with company B, I wont receive anything from company A as I never started there or worked an hour there.

I did fill a new starter checklists/P46 with company B too

Dazed_and_C0nfused

dummyfiss said:

Yeah I mean with company B, I wont receive anything from company A as I never started there or worked an hour there.

I did fill a new starter checklists/P46 with company B too

And what statement did you select?

dummyfiss

Dazed_and_C0nfused said:

dummyfiss said:

Yeah I mean with company B, I wont receive anything from company A as I never started there or worked an hour there.

I did fill a new starter checklists/P46 with company B too

And what statement did you select?

I selected Statement B, if im not mistaken

Dazed_and_C0nfused

dummyfiss said:

Dazed_and_C0nfused said:

dummyfiss said:

Yeah I mean with company B, I wont receive anything from company A as I never started there or worked an hour there.

I did fill a new starter checklists/P46 with company B too

And what statement did you select?

I selected Statement B, if im not mistaken

That makes sense.

You will be on the emergency tax code (1257L).

Your new employer will use that on a non cumulative basic in March and will then automatically change it to a cumulative basis from 6 April onwards.

dummyfiss

Dazed_and_C0nfused said:

dummyfiss said:

Dazed_and_C0nfused said:

dummyfiss said:

Yeah I mean with company B, I wont receive anything from company A as I never started there or worked an hour there.

I did fill a new starter checklists/P46 with company B too

And what statement did you select?

I selected Statement B, if im not mistaken

That makes sense.

You will be on the emergency tax code (1257L).

Your new employer will use that on a non cumulative basic in March and will then automatically change it to a cumulative basis from 6 April onwards.

I think I’m already on 1257L. Would that change anything?

This whole affair began when a couple days ago I got a letter from HMRC telling me what my tax code was, and seeing that I had company A as my current employer, which is incorrect as I never started there and they mistakenly kept me on payroll.

Dazed_and_C0nfused

dummyfiss said:

Dazed_and_C0nfused said:

dummyfiss said:

Dazed_and_C0nfused said:

dummyfiss said:

Yeah I mean with company B, I wont receive anything from company A as I never started there or worked an hour there.

I did fill a new starter checklists/P46 with company B too

And what statement did you select?

I selected Statement B, if im not mistaken

That makes sense.

You will be on the emergency tax code (1257L).

Your new employer will use that on a non cumulative basic in March and will then automatically change it to a cumulative basis from 6 April onwards.

I think I’m already on 1257L. Would that change anything?

This whole affair began when a couple days ago I got a letter from HMRC telling me what my tax code was, and seeing that I had company A as my current employer, which is incorrect as I never started there and they mistakenly kept me on payroll.

No, statement B ensures the emergency code (1257L) is used.

The only slight wrinkle is that it's used on a non cumulative basis so if you earn over £1,048 you will pay some tax and if that is more than you strictly need to pay them HMRC will refund it later this summer.

Your new employer cannot refund it as your next payment will be in a new tax year.

NB.  I'm assuming you are paid monthly.

dummyfiss

I am indeed taxed monthly, with a yearly salary around 30k.

I have been out of work for a bit so my savings are looking a little sparse 🥲 what kind of impact can I expect this payday compared to a normal, properly taxed salary? 

Dazed_and_C0nfused

dummyfiss said:

I am indeed taxed monthly, with a yearly salary around 30k.

I have been out of work for a bit so my savings are looking a little sparse 🥲 what kind of impact can I expect this payday compared to a normal, properly taxed salary? 

None.  If you were previously on 1257L then you will be on the same code.

What you might (temporarily) miss out on is the benefit of any unused allowances from earlier in the current tax year.

dummyfiss

Dazed_and_C0nfused said:

dummyfiss said:

I am indeed taxed monthly, with a yearly salary around 30k.

I have been out of work for a bit so my savings are looking a little sparse 🥲 what kind of impact can I expect this payday compared to a normal, properly taxed salary? 

None.  If you were previously on 1257L then you will be on the same code.

What you might (temporarily) miss out on is the benefit of any unused allowances from earlier in the current tax year.

Ohhhh perfect! I was really worried I was going to get double taxed on a single salary or something of the sort 😭

Wouldve screwed up my budgeting plans