What happens when you do a couple of days for two different agencies/employers in the same week and you gross <£200 on each? I did that a few times and paid 0 tax/NI on both yet my combined income for that week was >£300 i.e. liable for tax/NI/pension both from me and employer…Now waiting for last year’s tax returns to see if they’ll try to make me pay any NI / tax from weeks like that…If they do, they’ll probably ask for the employer’s NI contribution, any chance of getting them to pay it? All work done as PAYE.
Earnings in any particular week are irrelevant from a Tax/NI viewpoint. What’s important is your earnings/income over the whole year.
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Pretty sure if you work for different companies like that your supposed to inform each of them what other hours you’ve worked so they’re aware.
How that’s input into tax etc no idea as they can’t both input into the tax system.
I think your going to be waiting for the year end review from HMRC and see what additional monies you owe.
Doubtful you’ll get anything from the employers though if they can avoid if they will
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Roymondo:
Earnings in any particular week are irrelevant from a Tax/NI viewpoint. What’s important is your earnings/income over the whole year.Sent from my CLT-L09 using Tapatalk
That is true for Income Tax (which is assessed as a total from all employments over the whole year), but not true for National Insurance (which is assessed per employment and per pay period).
Did you complete a P46 for the second job stating you already had a job? If so then NI would have been taken for the whole £200, not anything above the £138 per week threshold. Also you should have paid tax on everything you earned at the second job, having to put in for a refund for any overpaid tax for the weeks you worked more for the second than the first and where the income from the first didn’t exceed your weekly tax free allowance.
If you didn’t complete a P46 or completed it incorrectly so you were getting the NI and income tax allowances applied to both then HMRC will come after you for both underpaid tax and underpaid employee NI.
Conor:
Did you complete a P46 for the second job stating you already had a job? If so then NI would have been taken for the whole £200, not anything above the £138 per week threshold. Also you should have paid tax on everything you earned at the second job, having to put in for a refund for any overpaid tax for the weeks you worked more for the second than the first and where the income from the first didn’t exceed your weekly tax free allowance.If you didn’t complete a P46 or completed it incorrectly so you were getting the NI and income tax allowances applied to both then HMRC will come after you for both underpaid tax and underpaid employee NI.
No P46 (first time I ever hear about it…should’ve done my research back then)
So how would it work then, since both agencies pay on the same day (friday) there’s no way for me or for one of them to know how much the other is paying before Friday and if NI is to be paid then do they both split the bill or does only the 2nd one pay (since it’s their pay that brings me over the NI threshold)?
ETS:
What happens when you do a couple of days for two different agencies/employers in the same week and you gross <£200 on each? I did that a few times and paid 0 tax/NI on both yet my combined income for that week was >£300 i.e. liable for tax/NI/pension both from me and employer…Now waiting for last year’s tax returns to see if they’ll try to make me pay any NI / tax from weeks like that…If they do, they’ll probably ask for the employer’s NI contribution, any chance of getting them to pay it? All work done as PAYE.
What needs to happen here is the op needs to grow a brain
At what stage in time does anyone work without paying there dues, unless you’re drawing the unemployment benefits as well now that would explain it
ETS:
What happens when you do a couple of days for two different agencies/employers in the same week and you gross <£200 on each? I did that a few times and paid 0 tax/NI on both yet my combined income for that week was >£300 i.e. liable for tax/NI/pension both from me and employer…Now waiting for last year’s tax returns to see if they’ll try to make me pay any NI / tax from weeks like that…If they do, they’ll probably ask for the employer’s NI contribution, any chance of getting them to pay it? All work done as PAYE.
What needs to happen here is the op needs to grow a brain
At what stage in time does anyone work without paying there dues, unless you’re drawing the unemployment benefits as well now that would explain it
nightline:
unless you’re drawing the unemployment benefits as well now that would explain it
Wait a minute, but I AM unemployed! I’m registered with agencies but none of them employ me: they have work - I get paid; no work - no pay. Seems to me I’m eligible for the big money from the JobCenter! What are they paying nowadays, £15-25 per week? And I have to go there twice a day to prove I’m looking for work, rite? Sounds easy. Gonna give them a ring first thing in the morning.
Right, the first agency you signed up with should have signed you up as normal.
You were obligated to declare to the second agency that their work would be your second employment.
Agency one would use your P45 from your previous employment and the government issued regulations to calculate how much tax you should pay on your work, taking into account the NI personal allowance £8250 ish and the Tax Personal Allowance of £12500. They would deduct tax and national insurance percentages from the pro-rata amounts exceeding those figures before paying you and send that money to HMRC.
Agency two, having been informed that they are second employment, will deduct tax and national insurance from the full amount of your income. At the end of the year, and a bit, HMRC go back through the records, compare the amount of tax and NI you paid against the gross pay figure declared to the revenue and if there is a discrepancy they either issue a rebate, or adjust your tax code for the following year to lower your personal allowance so that tax can be paid on the shortfall.
nsmith1180:
Right, the first agency you signed up with should have signed you up as normal.You were obligated to declare to the second agency that their work would be your second employment.
Agency one would use your P45 from your previous employment and the government issued regulations to calculate how much tax you should pay on your work, taking into account the NI personal allowance £8250 ish and the Tax Personal Allowance of £12500. They would deduct tax and national insurance percentages from the pro-rata amounts exceeding those figures before paying you and send that money to HMRC.
Agency two, having been informed that they are second employment, will deduct tax and national insurance from the full amount of your income. At the end of the year, and a bit, HMRC go back through the records, compare the amount of tax and NI you paid against the gross pay figure declared to the revenue and if there is a discrepancy they either issue a rebate, or adjust your tax code for the following year to lower your personal allowance so that tax can be paid on the shortfall.
Thanks a lot!
make sure you pay NI , thats the number one. i know of a couple of blokes who didnt and it racked up ,in one case actually pulled a small biz he had going under when they called the unpaid amount in
nsmith1180:
Agency one would use your P45 from your previous employment and the government issued regulations to calculate how much tax you should pay on your work, taking into account the NI personal allowance £8250 ish and the Tax Personal Allowance of £12500.
The P45 does not contain entries for NI deductions.
NI allowances are applied per pay period, and separately per employer.
If the two employments each fall under the so-called Primary Threshold, then there is no NI to pay, notwithstanding that pay totalled across multiple employments may be in excess of the PT in any pay period.
Unlike with income tax and the tax-free personal allowance, there is never any refund of NI at the end of the year based on an annualised allowance.
This is because the allowance with NI is not annualised, it is per pay period, and per employer.
There are however rules to prevent tax evasion. The employments must be genuinely separate, so you cannot simply set up multiple payrolls simply to make it appear on paper that you have a series of separate part-time employments which all ultimately derive from a common source.