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Sam
Sam, Accountant
Category: Tax
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I need to check if I overpaying my tax. I have started a new

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I need to check if I overpaying my tax.
I have started a new job and been put on BR tax code for £31,000 income. My second job which pays £18p/h and is not on a fixed hourly contract but on average I make about £300 per month.
Please can you check my payslips and see if I am being overcharged for tax.
I also haven’t received my £12500 personal income? Please help

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Customer: replied 13 days ago.
Thanks!

Because you have two employments HMRC will be not be aware of which is your main job on which your personal tax allowances should be allocated but clearly you want them against this new job - so you have two choices - one ask your payroll department at this new job to let you fill in a new starter form so they can send this to HMRC to issue the correct tax code to use againt this employment (which will allow you to earn £1042 tax free a month - and then the second job BR ( all at 20%) or you can speed this process up by phoning HMRC yourself - as soon after 8am as the lines are quieter (although they stay open til 8pm) with your national insurance number on 0300 200 3300

The change of tax code will then see you refunded any overpaid tax - however note they also will need to know what you were doing from 06/04/2019 to the date this new position started - Thanks Sam

 

 

Customer: replied 13 days ago.
From 06/04/2019 I was working part time where I was earning roughly £900 per month
Customer: replied 13 days ago.
So if my main job is switched to the tax code 1250L how much can I expect to get a month after tax with a £31k annual income?

 

 

I do not have the capacity to work that out as you will have to change tax allowances from the part time job to the new one - and would have a change over position but as a rough estimate you will pay £314 tax with the new full time job a month and then if just earning £300 a month with the part time - then £60 there but make sure the part time job is then BR Month one (X) and that the new job is 1250L Month one (x) or you pay too little tax and then owe HMRC - thanks Sam

Customer: replied 13 days ago.
Thats great
Customer: replied 13 days ago.
Will I get refunded for the tax I overpaid previously?

Hi

 

 

Only at the end of the year I am afraid as you will need to be month one allowances on both jobs between now and 05/04/2019 or will pay too little tax so after 05/04/2019 when you have both P60s send them to HMRC to create the tax refund for you - Thanks Sam

 

 

Customer: replied 13 days ago.
Sorry when I can send the p60s I don’t quite understand as 05/04/2019 has passed?

Hi

Apologies I meant after 05/04/2020 - its getting very late - Thanks Sam

 

 

 

Customer: replied 13 days ago.
Ahaa that makes sense!
Customer: replied 13 days ago.
So in summary I need to change over the tax codes to 1250L for my main job and BR for my second job? Will this process be straight forward?

Hi

 

 

Yes its stright forward as advised above - phone HMRC tomorrow morning and they can change the tax codes over BUT both MUST go onto a MONTH 1 basis or you will pay too little tax. (this means that from next pay day you can earn £1041 tax free on the main job and pay tax on the excess and pay 20% tax on the part time job)Thanks Sam

 

Customer: replied 13 days ago.
Sorry Sam what do you mean by month 1 basis

Month 1 basis means that you pay the right tax each month but it cannot refund tax overpaid or collect tax unpaid. Tax codes work effectively when they are implemented from the start of the tax year, - in this case we are asking for a swap of tax code from the part time job to the new full time job. If the tax codes were operated on what's known as acumalative basis then when applied against the new job it could NOT recognise that the allowances had been partly used from April 2019 to now on the part job - thereby giving then fully as if they had not had any used against the new job. The rsult you would pay no tax for the reminder of the year on the new job which is incorrect. Similarly code BR used against the part job (without the Month 1 basis) would charge 20% on everything earned to date - so too much tax paid there but the overall position within Month 1 basis is you would pay too little tax.

By asking for Month 1 basis this ensures that the right tax is taken from now to 05/04/2020 but does prevent the overpiad tax from the new job being repaid now - hence whay you need to claim a tax refund after 05/04/2020 by sending both P60s in - hope that explians matters more clearly for you. Thanks Sam

 

 

 

Customer: replied 13 days ago.
Ahhh I see! So if I ask for the 1 month basis HMRC can do that and for any refund I can claim after 5/5/2020
Customer: replied 13 days ago.
Thank you sooo much!!!

Hi

 

You've got it!! (after 05/04/2020 for tax refund - think you are getting tired now too!) Let me know if I can assist further or if you have all that you need, then it would be appreciated if you could rate me for the level of service I have provided (or click accept) many thanks - Sam

Sam and 3 other Tax Specialists are ready to help you
Customer: replied 13 days ago.
Yess I am also getting tired time to sleep haha! Thank you so much Sam, you are a wealth of knowledge and helped me out greatly!