Incorrect tax code on second job.

Chucky1234 · 19 April 2017 at 10:11AM

Hi all.

I have a full time job which covers my personal allowance, my tax code used on this is 1150L.

I also work part time at a pub where he has recently put me on the payroll. He didn't give me a P46 to fill in but he does know I have another job which uses up all my personal allowance.

My tax code on the job at the pub is also 1150L meaning I'm not getting tax deducted from my pay. I've told him that my tax code needs to be zero but when he spoke to his accountant she said because the tax year has just ended it will sort itself out (this was just after the tax year ended) but since then my tax code still hasn't been changed so I'm not getting tax deducted.

This has being going on for about 6 weeks and I get paid around £100 a week there meaning I currently owe £120 in tax.

I told the manager to change my tax code so it gets deducted in my pay as otherwise I have to keep putting money aside but he just laughed it off and said 'well give me the money and I'll put it aside for you.'

Does anyone have any advice as to how I can get this sorted? Also what is likely to happen? Will I get a letter from HMRC telling me I owe them tax? Will the employer get a letter saying to change my tax code and then it'll be deducted via paye?

Thanks for your help in advance

MichelleUK · 19 April 2017 at 10:44AM

Phone HMRC and they will issue the correct tax code to your second employer.

TadleyBaggie · 19 April 2017 at 11:18AM

The tax code for your second job needs to be BR if your total income is below the higher rate threshold, or D0 if it is above it. In the latter case you might end up paying too much tax, which you would need to reclaim at the end of the tax year.

Chucky1234 · 19 April 2017 at 11:19AM

Thank you. What will happen with the tax that is due as a result of him applying the incorrect tax code?

Chucky1234 · 19 April 2017 at 11:20AM

My income is below the higher rate threshold. I know I need to be on BR but getting him to change it is the issue

Dazed_and_confused · 19 April 2017 at 11:30AM

Before phoning HMRC you could have a think about how you want to pay back the tax due.

From your original post this affects both this and the previous tax year.

Nothing you can do about last year now, HMRC will send you a calculation showing what's due in due course but you options for the current year.

Unless your total income is going to exceed £45000 (£43000 in Scotland) the tax code you need for the second job is BR (basic rate). Normally in this situation it would be issued now on an emergency basis so the correct tax is deducted from now on but anything due from 6 April 2017 would be sorted later, in a similar fashion to what's going to happen for last year.

The alternative is to ask for the BR code to be issued on a 'cumulative' basis and this means the tax is calculated back to 6 April 2017. That has the benefit of sorting out any arrears for this year but means you will have a short term hit on your take home pay with the second job. Worst case scenario is that 50% tax is deducted for a week or two until the tax is upto date for the current tax year.

Chucky1234 · 19 April 2017 at 11:51AM

Thanks all. Out of interest what happens if HMRC issue a new tax code but he still refuses to change it?

I don't think he understands that it doesn't impact him which is why he is reluctant to change it - he thinks that he will have to pay tax on it too so is content to just sit and wait.

Dazed_and_confused · 19 April 2017 at 12:10PM

I think that we would fairly unusual, don't remember any posts along those lines on here over past few years.

There really is no advantage in doing that and they would only be attracting unwanted attention from the HMRC.

Looking back at your op, one other thing to note is the P46 was abolished several years ago and replaced with a new starter declaration the employer should have got you to complete.

agrinnall · 19 April 2017 at 1:31PM

Chucky1234 wrote: »

... he thinks that he will have to pay tax on it too so is content to just sit and wait.

Then he's an idiot. He obviously has no tax to pay, and because it sounds like your earnings are below the Weekly Secondary Threshold there is also no Employer's NI due.

Intoodeep · 20 April 2017 at 1:09PM

Chucky1234 wrote: »

My income is below the higher rate threshold. I know I need to be on BR but getting him to change it is the issue

He cannot change it without notification and authorisation from HMRC

Incorrect tax code on second job.

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