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double pay issue
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k4c3yxd
Posts: 1 Newbie
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:)
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:)
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Comments
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You give your P45 to the new employer. HMRC will adjust your tax code so that you pay the correct amount of tax0
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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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