Hi, I would be grateful if anybody can advise me on the following.
We took on an employee who has another part-time job so his tax code becomes BR as to the directions on the P46, however then the employee states that his part-time job is very minimal hours and he does not earn over the tax allowance at that job, but he does at our employment, so should I change his tax code to his other employments tax code and they can change theirs to BR?
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Zoe
No, the employee needs to contact HMRC, explain the situation and ask them to issue revised tax code notifications to both employers.
No. You can't change tax codes yourself
There are two ways of resolving this issue; the correct way, and the backup plan.
1) The correct way is for your employee to call the tax office and ask them to switch the tax codes around. They will then issue both you and the other employer a P6 notification. Any tax that you've deducted from him in the interim will be refunded to him by you through the payroll, if necessary. He could, if he wants, ask to split the tax code amongst the jobs (usually resulting in something like 374L/373T) but if he's earning over the PA with you, there's not much point. If, on the other hand you're paying him enough to put him into higher/additional rate taxation, then he should ask that the tax code for the other employer be changed to D0/D1. This should work fine.
2) The other way round it is for both employers to issue a P45, and input each other's P45s as a new starter. This would have the desired effect, although it could make problems with things like statutory payments (paternity pay etc)
PS Just noticed that my post crossed over with that of collinsz