Impact of old job monthly pay schedule affecting tax liability at new job
Comments
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If you apply the X code to your full years pay it will give you an incorrect answer (should anyway). If you apply the 1185L code (unless you have other allowances*) then this should give you the correct tax due for the full year.
* If you have allowances in one job that aren't with the other you need to ensure that HMRC have only counted them for the appropriate months. And just as an aside I will mention child benefit - if no children then forget the comment.0 -
Last week I received a letter from HMRC telling me my tax code is K818X. When I checked online it said 364LX, which prompted me to call HMRC in the first place which I did the next day, by which time it was 360LX, and today it is 352LX. Is it safe to assume then that my new employer received the same letter containing the K818X code and that is how I will be paid at the end of September? Will this 3??LX number go down every day until my pay day (because at the moment HMRC doesn’t know when I will be paid) and at that point it will become fixed and remain my tax code for the rest of the year?
Thanks for clarifying the X. No children so no child benefit.0 -
There is a lot of difference between K818X & 352LX. I can only suggest that you contact your employer & ask which code they have been asked to apply. A K code is unlikely to be good in your circumstances & should have come with an proper explanation. Do you understand that explanation? Does it make sense to you? Do they think you still have both jobs?
Just thought I should expand on the K code. The only time I had a K code (approx 350) was when I had a state pension approx £14k in addition to my normal earnings. So K818 implies an addition of over £30k (possibly less at 40% tax.
The problem with the HMRC website is that they tell you which tax code SHOULD be applied today but do not tell you what tax code your employer has actually been told to apply.0 -
My employer confirmed they have tax code 360L for my next payday.0
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I do hope that has an X (or non-!!! or similar) on the end or you are in for a nasty shock next payday.0
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I just re-read the email from my HR department, the tax code is “360L mth1”.0
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It works both ways round. When you first joined your old employer you would only have been paid 11 times that year and would have got a tax refund.
If you add up the net pay received in August and September from both jobs together, it should be much more than you would receive in a normal month. This "extra" net pay is what is being deducted back in instalments over the remainder of the tax year.0 -
My payslip for this month has been generated for payday this Friday. The tax code my employer has applied is 317L and the tax basis is Week 1/Month 1. My net pay is £300 less than what I was taking home monthly in my old job, despite my gross salary increasing by £4000 a year. This is simply depressing and I cannot afford this for the rest of the year.0
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Have you worked out how much tax you will be liable to pay for the full year on all your earnings? If not, you should do that & check if this tax code is correct. If you need help to do that then we will help.
ETA
Are you saying that you are paying around £500 more in tax than in your previous job?0 -
I just checked my 06 August payslip from my old job which was the last time I was paid for a full month of work and compared to this month payslip from the new job for which I’ll be paid on 28 September and is the first time I am being paid for a full month...
Old job, tax deducted: £1251.80
New job, tax deducted: £1459.400
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