Employee has two jobs

Employee has two jobs

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Can anyone please guide me re the following scenario:

A person has a full time job Mon-Fri.

He finds a saturday job with another employer.

How does the second employer deal with this scenario? Does he deduct PAYE and NI or is it upto the employee to declare the second employment on his personal tax return?

If the second employer deducts PAYE and NI, what code does he use, the normal coding or some other code?
MR

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By neiltonks
13th Nov 2007 20:36

Advice
Assuming the Mon-Fri and Sat employers aren't related, then...

Each employer calculates and deducts NI as normal based on the pay the person earns in that employment - the employers don't have to do anything special because they happen to know of the existence of the other employment.

Tax also follows the normal rules. So the second employer gives the employee a P46 (there will be no P45, presumably) and allocates a tax code based on which of the statements the employee ticks. If the employee fills in the form honestly, this should be statement C which results in a tax code of BR.

Neil.

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By AnonymousUser
13th Nov 2007 21:49

Thanks Neil, but what does the BR mean
Thanks Neil.

when the P46 is received by the Revenue would they allocate another code or does it stay BR?

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By geoffwolf
13th Nov 2007 22:15

BR
It should remain at BR meaning that tax is deducted at 22% this tax year. If the employee is into higher rates a D0 tax code would be issued.

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By User deleted
13th Nov 2007 22:55

Split tax code?
It is my understanding that the employee may be able to split their tax code.

The following link may be useful:-

http://www.hmrc.gov.uk/students/two_pt_jobs_pa_on_both_9_3.htm

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By neiltonks
13th Nov 2007 23:22

Split code
HMRC may indeed split the code if they see fit . However, neither employer needs worry about this - if HMRC decides to split the code they will issue each employer with a P6 in the usual way.

My point is that each employer treats the employee in the normal manner - the person's circumstances are not the concern of either of them - they just do as they are told either by the employee (via a P46 or P45), or by HMRC. The ramifications of the fact that the employee has multiple jobs are for the employee and HMRC to worry about!

Neil.

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By 1228330
19th Nov 2007 16:39

NI in this case.
In the case outlined it seems unlikely that there will be NI on the Saturday job as it will not reach the LEL. However, I have a number of employees with joint appointments and depending on the split of their total salary between the university and the college, they can end up either paying too much or too little NI. The former is most annoying to them as they have to claim it back each year from the Revenue and cannot believe that I could not get it right for them if I chose!

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By Paul Soper
19th Nov 2007 18:47

Deferment
If there is a danger of paying too much NIC should a (could a) deferment application be made so that the correct excess is collected after the end of the year - as occurs if have both trade and employment income and apply for deferment.

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By aburt01
20th Nov 2007 12:32

You asked for clarification of BR ...
When you go to HMRC (http://www.hmrc.gov.uk/forms/p46.pdf) to print-off and give employee P46 to complete and sign, they should mark the A,B, or C box that applies to them. In the employer section on page 2, it reminds the employer which tax method to apply. BR is mentioned. Probably used to mean Basic Rate. Yes 22% currently, full explanation of all current rates visit HMRC.(http://www.hmrc.gov.uk/employers/rates_and_limits.htm) but remember no tax free pay in this case, so the % applies to all taxable pay. (22p in EVERY £ earned)

At the end of the day, the second employer, if different to the first, has to apply PAYE and NI as if they don't know the 'primary' employer exists. (Except what is declared on P46)

Even if the same employer has both contracts of employment, there remains a opt-out clause I believe where NI and PAYE can be treated as if it were 2 separate employers, on the grounds of computer systems unable to treat as 1. This happens sometimes in Local Government. (Say a library employs a schools worker)

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