Calling MrAnchovy (or anyone else that might know...!)

[wickedwitchofwaterloo]

I have a part time job that currently uses my tax code 810L and I am about to start another part time job.
My first job doesn't take up all of my personal allowance (leaves about £2500 I estimate) is it possible to get my tax for the second job to reflect this and take the rest of the allowance into account before using a BR code for my tax?

Many thanks!

tbh you would be better off discussing a gross wage with first job and then any other job gross wage

The first job said she was paying £10 nett and then she is paying me whatever it is gross (£11.60 I think but nannypaye advised her on this..?) the other job is the same so, what should I be doing, discussing it as xxx gross?
Either way, will this change my original question?

In answer to your question yes it is posible to have a split tax code. You would need to write to HMRC to ask for your allowance to be split between jobs. This may take a few weeks to resolve though so you would probably have to be on BR while you wait for this to be received. See
www.hmrc.gov.uk/incometax/starting-work.htm#3

If you don't do this and your firsrt job is below the tax code, you will overpay tax and have to wait until after the end of the tax year to get this back and would probably have to do a tax return although you may be able to do this by writing and enclosing copies of the P60s for each job.

You have a few problems:

1. If you get your first pay for the new job before 6 April and don't have a split code in place by then you will overpay tax in 2012/13. The only way to sort this out will be to call HMRC when you have P60s from both jobs.

1. The information about your current job doesn't sound right. If you have about £2,500 of your allowance unused you must be on about £5,600pa? At this rate, no tax or NI is payable so Gross Pay = Net Pay. In fact if you are getting less than £107pw you won't even be getting credit towards the basic state pension or qualifying for Statutory Sick/Maternity Pay, JSA etc. Even if you are getting more than this there is an good chance that the employer is not actually reporting your earnings so that you do qualify - if they were you would be getting a payslip each week/month that would show exactly what they were paying you and the deductions.

1. What do you mean "the new job is the same" - the same as what, £10ph net? Regardless of what tax code you are on? £11.60ph gross? You need to agree a gross rate of pay for your new job.

1. You need to agree a gross rate of pay for your old job.

1. As a guide, a nanny working 55 hours a week at £11ph gross earns £31,500 - about average earnings across the UK for a full time worker. This nanny would take home £8.36ph net. It seems to me that this level of salary which works out at £120 per day is a fairly good benchmark for expectations. If this is a first job, hours are short, duties very light due to kids at school in the day, or you are in an economically depressed area expect less; if you are very experienced, duties are very heavy e.g. twins or a nanny share, or in Central London you can hope for more.

1. Once all this is in place, if you are earning less than £9,440 a year in one job it is still going to be worth splitting your tax code. You can arrange this yourself with HMRC but most nanny payroll agencies work with HMRC to help coordinate and speed up the process so it is best to talk to your current employer's payroll agent (if they have one), or the new employer's. But if your current employer is not registered for PAYE, HMRC may refuse to split the code, or issue a code for the new employer that still leaves you overpaying tax to be sorted out after the year end.

Thanks MrAnchovy - Just a quick reply, will reply more later, my first job is currently 9 hours a week, hence being under the tax allowance and yes I am on a payroll and get regular payslips. Nannypaye advised that they pay me £11.60 gross as they wanted to pay me £10 nett.

Nannypaye advised that they pay me £11.60 gross as they wanted to pay me £10 nett.

£11.60 x 9 hours is £104.40. Your payslip should look like this:

Gross Pay £104.40
Tax £0
National Insurance £0
Net Pay £104.40

This is not enough to qualify you for the basic state pension, SMP, SSP, contributions-based JSA or anything else: you should probably be signing on for JSA to at least get the pension credit (although you won't actually get any money because you earn too much). You may also be eligible for tax credits. You should see a benefits adviser at a Citizens Advice Bureau or elsewhere.

Yes, that's about right, however, now I have new job, this will take me over these thresholds so no need to sign on or anything I am assuming?

So as current employer IS registered for PAYE, I can ask for my tax code to be split for new job? Should I be asking for the same gross amount as current job as they too want to pay me £10 nett (got contract yesterday, it says £xxxx gross per annum, anticipated to be £10nett per hour)

Yes, that's about right, however, now I have new job, this will take me over these thresholds so no need to sign on or anything I am assuming?

No that is not correct because all of the contributory benefits depend on National Insurance contributions which are calculated separately for each job. If you had 10 part time jobs paying £100 for half a days work you could be earning £50k a year and paying higher rate tax but still not qualify for the basic state pension.

So as current employer IS registered for PAYE, I can ask for my tax code to be split for new job?

Yes, but beware this is unlikely to be in place for 2012/13.

Should I be asking for the same gross amount as current job as they too want to pay me £10 nett (got contract yesterday, it says £xxxx gross per annum, anticipated to be £10nett per hour)

If that is what the contract says I think it is fair to assume that that is what they want to pay you. If you want them to pay you more you can try asking them, but if I were you I wouldn't try justifying it on the basis of what you are going to take home net because your tax affairs are no concern of theirs.

That's all very helpful. Thank you very much.