nannies/employers - swapping tax codes between multiple employers

[tokengirl]

Hi all,

I was anyone knew how you go about swapping tax codes between multiple employers?

I've just employed a new nanny, but she was employed by a supply agency before me. (Signed P46 with them first).

She'll keep that up on the days she's not working for me.

My understanding is that means they'll use the 647L tax rate, and I'll use BR.

I don't think she'll get enough income on the remaining days with the agency (that she actually works) to fully use the tax code. And meanwhile, I'll be taxing her (gross) wage more (I would fully use the allowance if I had it).

We have a gross wage agreed, so it shouldn't be a financial problem for me. If anything it'll slightly ease my cash flow. But it means she'll be overpaying on her tax, and relying on getting a refund from HMRC whenever that finally happens. If they don't need a prod, etc.

It seems to me that the best thing would be for me to use 647L and the agency to use BR. Does anyone know how to sort that out? We (the nanny and I) agree it's the right way to go, but I don't know who we need to talk to to make it happen.

Any advice appreciated....
Thanks!

She needs to speak to tax office and they will correct rate at other employer to BR. She can't ask them to do this as they would have to terminate her employment and then restart it...(although the benefit of doing this is that she would then have a P45 to give you and her tax would definitely be straight!)

In the meantime, if she has given you a P46 stating you are her main job, on the basis of this, you should apply 647L on a week1/month1 basis. Neither of you will be doing anything wrong. She should get tax office to notify change of tax code to BR to other employer otherwise she will build up tax shortfall and get hit later on.

Sorry,meant she can't ask employer to just change her code...

You can't just swap them unfortunately, it has to be done through the tax office who will issue both employers with new codes.

Call your tax office or the New Employers Helpline on 0845 60 70 143.

Because it is near the end of the tax year it is likely that this will not be in place for this year. If she will have earned more than £6,475 with the agency between 5 April 2009 and 4 April 2010 there shouldn't be any overpayment, otherwise she will overpay tax on the payments you make before 5th April.

When the tax office issue new codes they will probably be on a 'Week 1/Month 1' basis which will mean that there could be an overpayment next year as well.

See here for information on how to get back overpaid PAYE - a full tax return is not usually necessary.

dilbertina, the P46 no longer asks about your 'main' job - the statement on Box B is "This is now my only job but since last 6 April I have had another job..."

From the circumstances in the OP, the nanny cannot tick that box. She will have to tick Box C "I have another job..." and that leads to code BR.

Oh in my last post 5 April should read 6 April and 4 April should read 5 April .

Ah. Now you see that's what happens when you go on Maternity leave and the bastards change everything! Thanks mranchovy and sorry tokengirl!

Thanks guys!