Could someone bring me up to speed on what the routine is with tax and ni if you work for 2 or 3 agencies.
Use your tax code at the one that gives you the most work, and pay basic rate at the others…all balances out in the end.
All the information you might need is on the Inland Revenue website - including “Helpline” phone numbers.
Agencies put you through the Employer/Employee PAYE system like any other employer - so your tax and national insurance is done by them (even if you only do as little as one shift a week).
Some advice here. If an agency offers you cash in hand regularly (some do) and you personally don’t declare those earnings, you need to be careful, as the Inland Revenue have a right to inspect and audit their books at any time, and ask for a list of all their employees.
Drivers who get cash in hand WILL be on an agency’s employee list courtesy of driver details records for insurance purposes - so if the agency cant answer “certain” questions from Mr Tax Man, you will be expected to!
These questions will come in the shape of a letter from the Inland Revenue entitled "Tell us what you’ve being doing between this date and that date" etc (and I’m not joking!).
Ask any taxi driver who doesn’t declare his earnings…and gets caught!
I dont know about elsewhere, but up here in the Central Scotland area in the last 10 years, five agencies have shut because they “cooked the books” and a lot of drivers got hit with fines and charges by the Inland Revenue.
If you get more work through 1 of the agencies have your P45 or a P46 registered with them.
As Wobble said that means your PAYE tax allowances are being used where you earn most of your money from. The say slip from that agency should show your tax code ( 543L or similar).
If you check the pay slips from the other agencies you should see “BR” as the tax code. Basic Rate also known as emergency tax simply means your paying a flat 11% NIC and 20% tax.
If your annual earnings main agency is over £5,435 and the total of all your earnings in the year is less than £41,435 then everything will have evened itself out.
If you’re staying on agency work then you might consider going to self employed or limited to consolidate your earnings and save tax.