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double pay issue

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I'll be finishing my current employment on the 31st of may and starting my new job on the 3rd of June, i get paid every month on the 26th currently and my new job will be on the 25th

so, i am on 0 hours at the moment so i work a month in hand, so when i  leave at the end of the next month [June] ill be getting paid 2 times basically. one from my old job and then the days ive worked for my new job

my question is: how much tax will i have to pay for this as it will look like i have 2 jobs, and when i get my P45 from my old job do i give it to my new employer and they will tell HMRC or does my P45 get taken straight to HMRC or does it go straight to my new employer.

-please help:)

Comments

  • Mark_d
    Mark_d Posts: 2,459 Forumite
    1,000 Posts Second Anniversary Name Dropper
    You give your P45 to the new employer.  HMRC will adjust your tax code so that you pay the correct amount of tax
  • tizerbelle
    tizerbelle Posts: 1,921 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    You won't have a P45 to give your new employer when you start with them as your old employer won't have processed you as a leaver at that point and will not have created a P45 for you.   

    What you do is fill out the HMRC Starter Checklist https://www.gov.uk/guidance/starter-checklist-for-paye and give this to your new employer when you start with them.  In all likelihood they'll ask you to complete one anyway.  You will select option B.

    Option B will give you a starting tax code of 1257L M1 with the new employer. This means you will be taxed on anything you earn over £1048 each month.  

    When you do get your P45, give it to your new employer payroll and if they have not already had a tax code notice sent to them from HMRC they will update your records to use the same tax code you had on leaving your old employer.  If they have had a code sent directly from HMRC they have to use that one not the P45.

    This does mean that you will have underpaid tax in June - you will have received a tax-free allowance for the month from both employers and so HMRC will at some point in the year, issue a new tax code to ensure this underpayment is recovered. (Assuming 20% on £1048 that would be an underpayment of £209 - so could be recouped at about £23 a month assuming HMRC issue a new code in time for July payroll.)

    You don't need to send anything to HMRC.  Your old employer and your new employer will send a file to HMRC on or just before each pay date with all the information that HMRC needs.


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