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Where Taxpayers and Advisers Meet

Income tax problem - two jobs

ZoeEN
Posts: 3
Joined: Wed Nov 07, 2018 7:54 am

Income tax problem - two jobs

Postby ZoeEN » Wed Nov 07, 2018 7:57 am

Hi!

I am having an issue with my income tax having started a new job but kept my old one with reduced hours.

I have worked at job one : REX for years, doing three shifts a week, but since starting job two : MBC, in September, I only do one shift a week.

My new job : MBC is also part time, 5 mornings per week.

At REX so far this year I earned £5064 and will earn in total £7785 April 2018 - April 2019

MBC I will earn in total £4541 (£648pm) in total less than tax free threshold.

HMRC insist there is no way to avoid being taxed and keep taxing me either £120pm on MBC wage or £160pm on REX wage.

I have spoken to HMRC five times and I am currently on a £2k tax limit for MBC, due to go over in December, and the advisor said I would just have to keep ringing back each month to tell them again what my circumstances are.

Is this right? If it’s not, can anyone advise?

Thank you!

robbob
Posts: 2628
Joined: Wed Aug 06, 2008 4:01 pm

Re: Income tax problem - two jobs

Postby robbob » Wed Nov 07, 2018 10:13 am

HMRC insist there is no way to avoid being taxed and keep taxing me either £120pm on MBC wage or £160pm on REX wage.
Not sure exactly what was said - you might not be able to avoid tax completely but you can split your allowances as best suits you and hmrc WILL NOT DENY YOUR REQUEST (just say your religion is Jedi and they should be putty in your hands)

note normal allowance is 11850 but your might not be !

If you have standard 11,850 allowance you can request that 7785 is allocated against against REX on a cumulative basis (778 code) and the balance against MBC 4065 (4060) (again cumulative code) with rex being classed as main employment

no tax should be deducted from Rex and tax on MBC i would estimate as being 4541-4060 * 20% = 481*20% = £96 or less than a tenner a month

Note it all depends on your available allowance which is normally 11850 if you have lower available allowance you will pay more tax - so hmrc are not necessarily wrong if you have much lower available.

If you are married and your spouse has more than £700 of personal allowance available - ie income below 11350 they can swap over 10% of their personal allowance to you and that will wipe out your tax - albeit they may have a little to pay if close to the 700 below the pa.

If you are lucky enough to live in Scotland you will benefit from the lower starting rate of tax which might knock £475* 1% = £4.75 off your tax bill - you have to love how they really support the lower earners in that respect :)

ZoeEN
Posts: 3
Joined: Wed Nov 07, 2018 7:54 am

Re: Income tax problem - two jobs

Postby ZoeEN » Wed Nov 07, 2018 3:26 pm

Thank you! That’s fab. I do have the normal tax allowance, so I’ll ask them to do that when I call back.
Initially the advisor said I would pay £53 per month from MBC as I would have a shortfall of around £300, then when I called again I was taxed £160pm from REX, then again £120pm from MBC, and currently no tax from either but only a £2k limit on MBC and taxed after that.

Could you help me understand why I will pay tax at all as I am under the tax threshold?

Thank you again.

robbob
Posts: 2628
Joined: Wed Aug 06, 2008 4:01 pm

Re: Income tax problem - two jobs

Postby robbob » Wed Nov 07, 2018 5:04 pm

Could you help me understand why I will pay tax at all as I am under the tax threshold?
7785+4541 = 12,326 total - personal allowance is only 11850 - so you are above the allowance

Thats presuming there is nothing in your tax code that would increase your tax free earnings

ZoeEN
Posts: 3
Joined: Wed Nov 07, 2018 7:54 am

Re: Income tax problem - two jobs

Postby ZoeEN » Wed Nov 07, 2018 5:31 pm

Well my maths is worse than I thought, no wonder!

Thank you, fingers crossed this works.

robbob
Posts: 2628
Joined: Wed Aug 06, 2008 4:01 pm

Re: Income tax problem - two jobs

Postby robbob » Wed Nov 07, 2018 5:55 pm

fingers crossed this works.
THIS WILL WORK


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