P45 Question

I’m about to do casual work for three different companies but like most people only get one P45. How do I get round the issue, if at all possible, of having normal deductions from the company holding my P45 and paying emergecy deductions from the other two companies?

don’t think you can, if you cannot provide a p45 to a employer showing your tax code which they must keep as part of their records, they have to put you on emergency code
but I could be wrong as usual :blush:

Nah, I think you’re right. Just wondered if there was a way so I don’t have to fruff around with paying too much tax then having the joys of trying or waiting to get it back.

Will they not just get you to complete a P46 when you join them?

Was this scenario one that the new real time reporting, to HMR&C, was intended to address? The second/third employer would report on every occasion you are paid and the primary employer would have the variations in the running totals/coding accounted for in their deductions from your pay on HMR&C instruction.

steelgoon:
Will they not just get you to complete a P46 when you join them?

is that the form that you complete when you cannot for whatever reason supply a P45, declaring that they are your one and only employer? if it is then in the OPs case that will be a false declaration and HMRC do not take kindly to that :imp:
If that’s not the form you mention then what is a P46?

It is that form. But there is an option to declare it as not their only job.

Come to think of it wiretwister you may be right. I forgot about that real time reporting HMRC were on about. I’ll have to look into that, thanks.

Hi justtickingover
I suppose it depends upon just how casual those 3 jobs are, in other words how much you will earn from them as I will try to explain…
On the HMRC site it says you can split your personal allowance between as many jobs as you like until you have used it up, for example, lets say your tax code is now 944 for the tax year April 2013 to April 2014, this means you are allowed to earn 9440 before being taxed anything.
However, if your primary job already earns you more than £9440 a year there will be no point in splitting your tax code because you are already earning up to that limit and will pay tax of 20% on all your earnings over that up until another quite high limit anyway(somewhere in region of 38 to 40k ithink?).
However, as another example lets say you only earn £5000 from your primary job (I am referring to your employer that holds your P45), this means you are wasting your tax code really because as Ihave already mentioned you can earn up to £9440 throughout the year before you are taxed anything. What you would need to do for this example would be to contact HMRC to split your code so that the first £5000 allowance is for your primary job and split the other part of £4440 to your other job. This now means you can earn up to £4440 before you are taxed anything in your second job whereas if you leave it absolutely every penny will be taxed at 20% in the second job.
Obviously I dont know your circumstances but it is all on the HMRC website , you will have to do the maths and see if it is worth it, and as i have alresdy said, you can split the code between as many jobs as you like as I understand it :smiley:

Highwayhero, thanks for that info. I’ll be speaking to a friend who is an accountant and see what he comes up with.

From the horses mouth.

hmrc.gov.uk/payerti/employee … -nop45.htm

Ask for your tax code to be split. I don’t think you could split it between 3 or 4 jobs, maybe just 2.

I’ve been in a similar fix. I just paid the tax as it was deducted and then applied for a tax refund at the end of the tax year and got £600 back.