People that work for more than one agency

If you are employed by one agency PAYE and they are a bit quiet so you sign for others what happens when it comes to tax. Do you pay a higher rate on the earnings from the other ones?

the first agency will use your tax code ie645L and all subsequent ones should just use BR (basic rate) as your tax code (i believe its a flat rate of 20% for tax plus what ever Nat Ins is) and no it doesnt matter how many you register with

To add to what Lee has said, at the end of the tax year you will be able to claim a tax rebate for any tax overpaid because of being stopped at basic rate by the second or so agency, so make sure you keep good records and preferably keep all the wage slips just in case you need them to back up your claim for a tax rebate.

Ok thanks for that.

Lee G:
the first agency will use your tax code ie645L and all subsequent ones should just use BR (basic rate) as your tax code (i believe its a flat rate of 20% for tax plus what ever Nat Ins is) and no it doesnt matter how many you register with

Not quite right.

You’ll stay on BR with the 2nd agency, until HMRC work out that you have two jobs. Then they’ll split your tax allowance between the number of agencies you work for, giving the highest amount to the agency you do least work for, which means you’ll overpay tax until the end of the year. Then they’ll argue the toss, and try and avoid paying you any back tax if the can get away with it.

EastAnglianTrucker:

Lee G:
the first agency will use your tax code ie645L and all subsequent ones should just use BR (basic rate) as your tax code (i believe its a flat rate of 20% for tax plus what ever Nat Ins is) and no it doesnt matter how many you register with

Not quite right.

You’ll stay on BR with the 2nd agency, until HMRC work out that you have two jobs. Then they’ll split your tax allowance between the number of agencies you work for, giving the highest amount to the agency you do least work for, which means you’ll overpay tax until the end of the year. Then they’ll argue the toss, and try and avoid paying you any back tax if the can get away with it.

More often than not, the first agency will use the full allowance (standard tax code at the minute is 647L) and the second agency you register with, will ask you to fill in a P46 (as you won’t have a P45, having probably given that to the first agency). The P46 will indicate that you have another employment. The second agency will be advised by HMRC to use code BR.

Come the end of the tax year, when your earnings have been declared, HMRC may split the allowance for the coming tax year, depending on what income is shown from each employment.

Alternatively, just contact HMRC and advise them how you wish the allowance to be split. Either way, the tax due from both employments should be the same. In the event of an overpayment, just send copies of P60’s with a covering letter to the tax office and they will repay any tax that has been overpaid.

like wise my L tax code is with my main employer yet i have worked for three differnet agencies and i have never had a rebate over the last 6 years i have never even kept the p60 is there any hope for me that i will be paid back something once i have lost them p60

■■■■■■00:
like wise my L tax code is with my main employer yet i have worked for three differnet agencies and i have never had a rebate over the last 6 years i have never even kept the p60 is there any hope for me that i will be paid back something once i have lost them p60

Unlikely that anything before April 09 can be claimed back if owed but I would contact your local tax office to find out about the tax year 09/10 :bulb:

ROG:
Unlikely that anything before April 09 can be claimed back if owed…

Why not? On PAYE you can still claim for tax back to tax year 2004-05 as long as you get the claim in before the end of January 2011. Self Assessment tax you can still claim for tax year 2006-07 until April 2011.

tachograph:
at the end of the tax year you will be able to claim a tax rebate for any tax overpaid because of being stopped at basic rate by the second or so agency, so make sure you keep good records and preferably keep all the wage slips just in case you need them to back up your claim for a tax rebate.

Ive just recieved a notice this morning from HMRC telling me Ive overpaid, and that a refund is due for both 2009/2010 & 2008/2009 tax years :smiley:

Coffeeholic:

ROG:
Unlikely that anything before April 09 can be claimed back if owed…

Why not? On PAYE you can still claim for tax back to tax year 2004-05 as long as you get the claim in before the end of January 2011. Self Assessment tax you can still claim for tax year 2006-07 until April 2011.

Coffeeholic is right. You wouldn’t need your P60’s either (although it does help!)

Contact the Tax Office and give your National Insurance number and tax reference number (if you have one) and they should be able to trace all your earnings. The tax office don’t generally destroy any of their records, even after 6 years.