Multiple agencies and HMRC

I’m about to sign up with a couple of other agencies, having been with just one agency for the past few months.

What happens about HMRC/Tax etc in these situations? If I get one lot of work from one agency and another lot of work from a different agency, it the second agency’s work classed as a “second job”, and if so does that cause problems with tax/NI ?

I’ve always been under the impression that people with two (or more) different jobs are more heavily taxed.

At the end of the tax year they will sort it out and either send you a bill or a refund.

I would not worry about it unless you need the cash now.

If you are working for multiple agencies then maybe paye is not the way to go. But that is controversial on here.

Research Lorraine Kelly. She knows exactly how to screw the tax man and the rest of us tax paying citizens :grimacing:

On the new starter checklist for the second job, tick the box that says you have another job. It just all gets worked out automatically, no fuss.

You don’t get more heavily taxed

Zac_A:
I’ve always been under the impression that people with two (or more) different jobs are more heavily taxed.

It’s actually possible to be more lightly taxed if one or both jobs fall under the “primary threshold” for NI.

But in general you will pay the same amount of tax on the combined earnings from two jobs, as you would if you earned the same amount from a single job.

I’m not aware of any situation in which a person would pay more tax on two jobs than they would pay on one.

The myth probably arises from the fact that the personal allowance is attributed fully to the first job (so you can earn £12k without paying income tax) whereas the second job pays the basic rate from the first pound of earnings.

It tallies out the same as if all earnings are derived from a single job, but for a person who compartmentalises the two jobs and is looking at their payslips, they will end up saying “I pay more tax on my Saturday job worth £3k a year, than my main job worth £13k a year”, when actually the truth is that they’re paying the same amount of tax in total as someone earning £16k a year from a single job.

No difference to how you’re taxed in terms of how much you pay; your personal allowance is allocated to one employer only so make sure this is the agency you get most work from (alternatively go ltd co).

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The personal allowance can be split between multiple employers, you phone HMRC and ask them to do this. Not too bad with someone who has part time jobs with two employers where they work for both in the same week with regular hours but it is much easier just to have the whole lot assigned to the one you do the most work with and just phone up for a refund at the end of the year for what you have overpaid, thinking of it as a savings tool. At the very worst you’ll overpay about £48 a week in any week where you work solely for the second agency. That £48 you just reclaim along with the rest of it after April 5th 2020 by just going to this website and filling in the relevant details:

gov.uk/claim-tax-refund

Cheers to everyone for the responses, I’d be reasonably content to wait till the end of the tax year for any refund due, I don’t think I could be bothered with the complications of being an LTD driver.

I phone up HMRC and get the main tax code changed over when there is a shift in the agency providing the main bulk of work.

If you don’t do this - you’ll end up paying base rate tax on all your earnings at that agency, possibly at 40% rate, if it looks like you’ll go over the threshold based on a full year’s projected earnings.

And if your married and your wife doesnt use all her personal allowance you can get it transferred to yours, and you can get a refund :smiley: going back about 6 years i think, i got nearly £300 just for ticking a few boxes online and now i take home an extra £4 a week or something like that…might as well sort it all out in one go if your dealing with hmrc

I’ve just done the same, and apparently I’ve got a monkey on it’s way in the post to me. I hope it is the half a grand kind though, - not one of these idiots at Westminster!..