2 Jobs & Confusing advice

Nomunnofun1

NurseMoneySaver1122 said:

Thank you for clarifying. 

I’ve called HMRC this morning and requested the above.  He said because I have received 1 pay from cleaning job for this tax year already, it has to be adjusted.  So new tax codes are:

Main Nurse job: 1211LX
cleaning job: BRX

I’ve look the ‘X’ part up, but not entirely sure. Presuming it’s to do with the 1 pay received from cleaning job already this tax year.

Do these look correct?

One final question, regarding estimated income. The estimate I’ve given is just my contracted salary. If I do any overtime, am I supposed to be updating that expected amount each time?

Many thanks in advance for everyone’s help!

First point - BR is correct. The ‘X’ means that each payment will be taxed without regard to previous payments in the tax year. However, if you have yet to receive any payments in this year (?) it makes no difference at all! The code is fine. 

Your last point - I wouldn’t bother. With the codes as they are now it will make no difference at all! 

Finally - your code is 1211L (you can ignore the ‘x’ as before) and not the standard 1257L. Your code has been reduced - any reason given in its breakdown?

Bookworm225

NurseMoneySaver1122 said:

Thank you for all the replies.  And it seems the consensus is on "option 3".  So I don't doubt this is sound advice.

Can I just clarify why option 1 (allocate tax free allowance to cleaning role so that is tax free income, with remaining tax free allowance to nurse role), would not ensure tax is collected correctly in the same way?

My brain is not getting passed seeing this option as simpler

because you state that the cleaning job has variable pay and therefore you cannot be certain how to split the code to ensure that it will always be tax free 

It would get very messy very quickly if you end up earning less than the allowance on the cleaning job in a given month and therefore have unused amounts carried forward to the next month. You would end up in the situation that your net pay could vary dramatically month to month. Over the course of the full year you will pay the correct total tax, but by splitting you risk ending up paying different amounts of tax each month as the cleaning job might end up under or overpaying month to month 

Nurse job earnings "rarely fluctuate" and at 1,500 pm you earn approx £450 per month above your annual allowance (12,570/12 = 1,048 pm).

Surely you can see the logic that it is simpler to "fix" nurse job by giving it the whole allowance so you get a consistent net pay each month as it won't fluctuate.

the cleaning job will then be taxed in full so you know every month that you will pay 20% of its gross earnings in tax and so you can budget accordingly for "a bit" more or a bit less net pay when the gross pay varies month on month. 



X suffix means tax is applied at 20% rate pending future info. In your case. as you will never be a higher rate taxpayer, it is essentially meaningless since you will always be paying at 20% anyway

no you do not adjust anything. Nurse job has already used up your full allowance. Overtime will not alter that fact, you will just pay more money in tax when you have overtime, but it will still be at the 20% tax rate.

NurseMoneySaver1122

Nomunnofun1 said:

NurseMoneySaver1122 said:

Thank you for clarifying. 

I’ve called HMRC this morning and requested the above.  He said because I have received 1 pay from cleaning job for this tax year already, it has to be adjusted.  So new tax codes are:

Main Nurse job: 1211LX
cleaning job: BRX

I’ve look the ‘X’ part up, but not entirely sure. Presuming it’s to do with the 1 pay received from cleaning job already this tax year.

Do these look correct?

One final question, regarding estimated income. The estimate I’ve given is just my contracted salary. If I do any overtime, am I supposed to be updating that expected amount each time?

Many thanks in advance for everyone’s help!

First point - BR is correct. The ‘X’ means that each payment will be taxed without regard to previous payments in the tax year. However, if you have yet to receive any payments in this year (?) it makes no difference at all! The code is fine. 

Your last point - I wouldn’t bother. With the codes as they are now it will make no difference at all! 

Finally - your code is 1211L (you can ignore the ‘x’ as before) and not the standard 1257L. Your code has been reduced - any reason given in its breakdown?

In answer to your question, he said he was reducing the code as I have already received 1 pay from my cleaning job on 9th April of £457 gross.

I'm not sure if that then changes your comment above about the 'X' in my tax code, as I HAVE received a payment in this tax year?

sheramber

NurseMoneySaver1122 said:

Nomunnofun1 said:

NurseMoneySaver1122 said:

Thank you for clarifying. 

I’ve called HMRC this morning and requested the above.  He said because I have received 1 pay from cleaning job for this tax year already, it has to be adjusted.  So new tax codes are:

Main Nurse job: 1211LX
cleaning job: BRX

I’ve look the ‘X’ part up, but not entirely sure. Presuming it’s to do with the 1 pay received from cleaning job already this tax year.

Do these look correct?

One final question, regarding estimated income. The estimate I’ve given is just my contracted salary. If I do any overtime, am I supposed to be updating that expected amount each time?

Many thanks in advance for everyone’s help!

First point - BR is correct. The ‘X’ means that each payment will be taxed without regard to previous payments in the tax year. However, if you have yet to receive any payments in this year (?) it makes no difference at all! The code is fine. 

Your last point - I wouldn’t bother. With the codes as they are now it will make no difference at all! 

Finally - your code is 1211L (you can ignore the ‘x’ as before) and not the standard 1257L. Your code has been reduced - any reason given in its breakdown?

In answer to your question, he said he was reducing the code as I have already received 1 pay from my cleaning job on 9th April of £457 gross.

I'm not sure if that then changes your comment above about the 'X' in my tax code, as I HAVE received a payment in this tax year?

If their payment you received from the cleaning job was free of tax , that amount has used up part of personal allowances. The deduction in your new code number covers that by reducing the available personal allowances by that amount.

The BR code operated on a month 1  basis - the X after it- is to prevent that payment being taxed now that the code has been changed to BR.