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.

penners324

Why is it frustrating? The only difference is 2 payslips and 2 payments into the bank account on pay day.

Unfortunately the breach of the childcare benefit limit is down to yourselves for not telling g hmrc to stop it or not putting enough into the pension scheme to fall below the limit 

chrisbur

SiliconChip said:

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. 

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.

OP if you wish to check if NI has been overpaid the instructions are here....
https://www.gov.uk/hmrc-internal-manuals/national-insurance-manual/nim01251

la531983

chrisbur said:

SiliconChip said:

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. 

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.

OP if you wish to check if NI has been overpaid the instructions are here....
https://www.gov.uk/hmrc-internal-manuals/national-insurance-manual/nim01251

It likely wont have been overpaid. Two payrolls, therefore two jobs. NI is taken and worked out per job. As far as HMRC are concerned this is two jobs and only the OP can solve this by talking to their employer and getting them to merge the payrolls. 

chrisbur

la531983 said:

chrisbur said:

SiliconChip said:

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. 

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.

OP if you wish to check if NI has been overpaid the instructions are here....
https://www.gov.uk/hmrc-internal-manuals/national-insurance-manual/nim01251

It likely wont have been overpaid. Two payrolls, therefore two jobs. NI is taken and worked out per job. As far as HMRC are concerned this is two jobs and only the OP can solve this by talking to their employer and getting them to merge the payrolls. 

If an employee has two jobs it is possible for them to pay more NI than is required.  As no figures have been given by the OP I have provided details for them to work out if having two jobs has caused an overpayment of NI.
If that is the case the overpayment can be reclaimed and if this is likely to continue there is an option to defer paying NI on the second job.
https://www.gov.uk/defer-national-insurance

Also worth remembering that for most people having two jobs results in paying less NI so if this is the case it would not be advisable to ask for them to be merged.  Indeed from the details given it is quite possible that the NI is already being calculated on the combined earnings the rules being...
Two jobs with no connection NI calculated separately for each job.  
Two jobs that are connected  NI calculated on the earnings of the two jobs added together.
Two jobs that are connected but employer is not able to add earnings together to calculate NI then goes back to NI calculated separately for each job. 

Edit.  Had a quick look back and see that the OP advises that tax of 40% is being deducted from second job.
That suggests an overpayment of NI is possible though without full figures not certain. Worth the OP checking though.