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Where Taxpayers and Advisers Meet

Tax with overlaps of jobs

Joined:Wed Nov 08, 2023 8:30 pm
Tax with overlaps of jobs

Postby SBoris » Wed Nov 08, 2023 8:49 pm

I have recently started contract work through an umbrella company, this work overlapped with my previous permanent employment by 4 weeks. I used the last 4 weeks as leave to start the contract work. Three weeks ago I sent the umbrella company my P45 from lady employer, last week I got hit for a large extra tax in my weekly umbrella company pay, listed as dual
Income tax. The umbrella company admin gave a generic answer that this is due to the overlap in employment which I expected. The amount looked like about 4 weeks of tax for the overlap but I don’t know how to work it out. This week have been again hit for more tax. My tax code has remained as 1275L throughout this time. I’m no where near the higher tax bracket earnings yet. Does anyone know how long it will take to get back to just being taxed on what is now a single income and if I can speed it up by contacting HMRC directly?

Joined:Sat Feb 01, 2014 3:26 pm

Re: Tax with overlaps of jobs

Postby bd6759 » Thu Nov 09, 2023 6:36 am

It corrects itself the first time the code is used.

If the overlap period as 4 weeks, you will have received 4 weeks of your annual allowance twice. That’s 4/52 x 12759 x your highest rate of tax. Since you had double pay in this period you may have strayed into the higher rate range for the period. This will correct itself next pay day..

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