New Job with Employment Overlap

Dingleberry23

Hi, I am currently in the process of leaving a job and joining a new one. I left the previous Job in february and started working at the new one immediatly, however, I am still employed by the previous company and receiving monthly pay from them until the 30th of June. I have not yet been paid by my new employer but will be at the end of this month, where I will receive 2 and a half months worth of pay on top of the monthly pay from my previous.

How can I minimise the effect this will have on my tax for this and the following year?

webmasterpolo

Pension contribution likely your best option.

eskbanker

https://forums.moneysavingexpert.com/discussion/6665277/new-job-with-employment-overlap

What tax effect do you anticipate, e.g. is the extra income likely to tip you into another tax band?

sheramber

Are you anticipating not being taxed enough as you will get two lots of allowances in the same month?

When you joined the new company did you complete a new starters form stating you had another job?

silvercar

We are only at the start of the financial year, so the following year won’t be affected . For this year you will have more income than otherwise. Increased pension contribution would reduce tax, though you may just see this as a financial gain on which you have to pay some tax.

LITRG

Hello. We have a useful guidance page on our website which sets out information on your tax position when changing jobs: https://www.litrg.org.uk/working/employment/changing-jobswork-changes . This includes information on what you should do if you don't have a form P45, which may be the case for you as you have not yet left your current (soon to be former) employment.