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Underpaid tax from overlap of jobs?

(4 Posts)
Nannyconundrum Thu 30-Apr-15 10:49:01

I will try and keep this simple:

In my previous job I was paid a gross wage. In my current job I am paid net.

I have discovered that there has been an underpayment of tax because I received my final pay from my old job, as well as pay from my new job in the same month.

So my current employer is liable to pay back the tax, is that right?

Any help is greatly appreciated, thank you

threegoingonthirty Thu 30-Apr-15 12:46:02

When you say "I was paid a gross wage" do you mean you were self employed so they paid you gross and you put it on a tax return once a year? Your new employer won't be liable for any underpaid tax from a previous job, that'll be up to you to pay.

Cindy34 Thu 30-Apr-15 20:23:21

If the underpayment is being claimed back via the taxcode, which might be the case if the payment is quite small, then your current employer WOULD be paying that due to then very foolishly doing a Net Pay Agreement.

Employers of nannies should always do a Gross pay agreement just like in other jobs, then an employees taxcode does not affect what the employers costs will be.

Has your employer moaned that their cost in April was more than they expected?

threegoingonthirty Thu 30-Apr-15 22:27:35

Yes, you're paid net in your current job, but what does the contract say? My agreement with my nanny was £10 per hour net, but the contract says a gross amount worked out on her tax code. Good thing too as HMRC have just changed her tax code to claw back some previous underpaid tax so I'm glad it's her paying it and not me!

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