(Not) declaring second job

travel_freak

Hi there,

Wonder if anyone could advise me on my circumstances:

1. I have a small part-time job which I do from home - have done for the last few years. This is self employed work and I receive the income without tax/NI. I always declare this income on a self-assessment form.

2. About 2 months ago I started part-time work for a different employer where the tax is deducted at source (PAYE). I filled in a P46 for this employer stating that it was my only or MAIN JOB - which it was at the time as although I am keeping on the home work, this second job was the major of the two in terms of time and earnings.

3. I am just about to start a third job where, again, tax will be deducted at source (PAYE). This time I have completed another P46 stating that THIS job is my only or MAIN JOB because this one is, again, the more major of the three in terms of time and earnings.

My question is: (1) Have I filled in the P46 forms correctly and (2) my third employer states in my employment conditions that I must not undertake any other paid work without informing them. I am slightly concerned about this and know I should tell them about the others but don't want to risk losing them. Is there any way in which 3rd employer will be able to find out/know about my other jobs from my tax code/P46s or from the Inland Revenue?

Also, does anyone have any experience of these sort of employment contractual restrictions on other jobs and what is best to do about them? The wording is along the line sof having to gain employer 3's consent to other work. Could they withhold consent in practice?

Any advice gratefully received and thanks in advance.

sarahlouise210

You have in effect filled in the P46 s incorrectly as you will receive your tax free allowances on each PAYE job - how much of a problem this will be is dependant on your eanings..the more you are earning the more tax you will have underpaid each month. This will of course be sorted out when you submit your tax return as you will declare all your sources of income on there but really do you want it to get that far - do you want a huge tax bill?? The correct procedue is for you to have your tax allowances allocated between the two PAYE sources. If your main(new main) job exceeds £4895 (I am assuming you are under 65!) then you will need all your tax free allowances against your main job and your other job should be taxed at BR (22%). If the main job income is less than £4895 you can split the tax code. Youe employer would know that your tax code was not the standard code if it was reduced to BR or to a reduced code but your tax code could be amended for many reasons and the employer only receives the code - not a full breakdown of how it is made up. It is common practise for contracts of employment to have clauses about other employments,usually there is no problem with you having other work, unless there is a conflict of interest. It is certainly in my own contract but I have never informed my employer when I have had other work.If you work for a large employer it is more likely to go unnoticed by payroll especially. You can sort your tax problems out by writing to the tax office dealing with your main employer and outlining your jobs and income and leave them to sort your tax codes out.A point to remember would be that as your Personal Allowances are now used up in PAYE income you may need to make payments on account for your Self employed work - or increase them if you already make payments on account, Hope this helps.

chloejane_2

i have a simular situation going on at work were i always have two or sometimes three jobs on the go all at once, and i would suggest that you look in your contract to see what the penalties are for not informing the employeer of other jobs, as where i work they can take discaplinary action, this has hapened to one of the girls and she has been dismissed, so check it out as im not saying you will be dismissed but for somthing as simple as telling your employeer you have other jobs is it worth taking that risk! hope this makes sence

paulus

On the matter of whether you will go directly to jail for committing a P46 fraud I think not.

The term "job" on the P46 relates to employment only, so you can quite legitimately sign the P46 for job 3, even if your self employed work was major.

Whilst p46 for job 2 was correct when signed it is no longer the case, so strictly you should notify the employer of job 2 of your change in circumstances.

sarahlouise210

paulus wrote:

On the matter of whether you will go directly to jail for committing a P46 fraud I think not.

The term "job" on the P46 relates to employment only, so you can quite legitimately sign the P46 for job 3, even if your self employed work was major.

Whilst p46 for job 2 was correct when signed it is no longer the case, so strictly you should notify the employer of job 2 of your change in circumstances.

the employer (job 2) has no authority to change the tax code now it has already been implemented - only the Inland Revenue can send a new tax code to the employer who will then be able to change the tax code.

Bordera

Contact the Inland Revenue and ask them to allocate any allowances you are due to the 3rd employment.

The basic rate (or higher rate if applicable) tax code can be issued for use with your second employment to prevent your receiving your allowances twice.

You will pay tax on your self employed income in the normal way, but again without the benefit of the personal allowance as these are already used for your employment

If your incomes are at reasonable levels you might also want to discuss your National Insurance position with the Inland Revenue. As a self employed person I presume you will have been paying Class 2 contributions by direct debit each month in addition to Class4 contributions with your annual tax bill.

As an employed person you will now have Class one contributions deducted from both of your employments and, as you have filled in your forms P46 in the way you have, full Class 1 national insurance will be deducted from each employment instead of just your main one and a reduced amount from your second employment. It might also be beneficial to defer the class 2 and class4 contributions for your self employment, so that you just make a top up payment if necessary instead of having the full amounts deducted and then having to reclaim any overpaid NIC.

Your best course of action is to contact the tax office you send your tax returns to and explain your situation to them.

travel_freak

Hello

This is just to say a million thanks to everyone for the really useful and comprehensive replies. I will now digest these and take the recommended action.

This has been a huge help in clarifying things for me.

Regards