Nurse bank

Mauts_issues

My wife works for NHSGGC and works bank shifts. Her bank shifts are classed as a second job and she pays 40% tax on these earnings. 

From what I can see HMRC class bank as a second job however the legal definition of a second job is if you have a separate contract with a separate employer. NHSGGC run and manage the bank so are they not the same employer. 

la531983

Mauts_issues said:

My wife works for NHSGGC and works bank shifts. Her bank shifts are classed as a second job and she pays 40% tax on these earnings. 

From what I can see HMRC class bank as a second job however the legal definition of a second job is if you have a separate contract with a separate employer. NHSGGC run and manage the bank so are they not the same employer. 

But I assume the payroll is separate so it will be seen as two separate jobs, even if it was bundled into one job with one payslip she would be coming out with the same net wage.

She isnt paying 40% tax solely because its a second job. Presumably she is at or above the 40% threshold already on job number 1?

Albermarle

Stocard said:

You're right to question this. NHS bank shifts often get treated as 'second job' taxation even when it's the same employer. The key issue is that your wife should request a 'BR' (basic rate) tax code for the bank shifts instead of the standard '0T' emergency code that triggers higher rate taxation. Contact NHSGGC payroll directly - many NHS staff don't realise they can do this. Also worth checking if she's actually crossing into 40% bracket overall, as la531983 mentioned. The cumulative nature of PAYE should sort itself at year end, but getting the right codes now will improve monthly cashflow significantly.

Employers can not change tax codes, only HMRC can do this.
She will have to get in contact with them, unless as said the 40% tax rate is actually correct.

Mauts_issues

Yeah unfortunately she has reached the threshold so the 40% looks to be correct. I just find it incredibly frustrating that bank is considered a second job even though the person is working for the same employer doing the same job in the same work place. 

Also angry that we have just been hit with a tax bill because her earnings were too high and we were receiving child benefit. 

sheramber

There is no such thing as second job tax

As far as tax goes ot doesn't make any difference how many jobs you have.

Tax is payable on your total taxable income and whether that comes from one job or 6 jobs makes no difference, the tax payable on the total is the same.

HMRC do not classify jobs by number. They deal with sources of income.

If the bank system operate under  a separate employer reference  them your complaint is with the bank  system and the NHS not using the one employer reference.

Albermarle

Mauts_issues said:

Yeah unfortunately she has reached the threshold so the 40% looks to be correct. I just find it incredibly frustrating that bank is considered a second job even though the person is working for the same employer doing the same job in the same work place. 

Also angry that we have just been hit with a tax bill because her earnings were too high and we were receiving child benefit. 

Whether it is considered a second job or not, will make zero difference to how much tax she has to pay in the end.
Regarding child benefit, best not to claim if she is not entitled to it, then no issues with getting a tax bill at a later date.

SiliconChip

Mauts_issues said:

Yeah unfortunately she has reached the threshold so the 40% looks to be correct. I just find it incredibly frustrating that bank is considered a second job even though the person is working for the same employer doing the same job in the same work place. 

Also angry that we have just been hit with a tax bill because her earnings were too high and we were receiving child benefit. 

I don't understand what your frustration is with whether it's a second job or the same job, the tax that's due is exactly the same in either case, as income tax is levied on total employment income (and some other types of income) from all sources. If she's earning enough to be a higher rate taxpayer then 40% is what's due on her marginal income. 

Where there could be a difference is in the amount of National Insurance paid, but as you haven't given us any figures it's impossible to say whether what she pays now is more, less or the same as it would be with a single job.

And your anger at child benefit clawback has to be directed at politicians, as how it's implemened is a political decision.