Two part time jobs - how do you sort tax codes out?

[JonahAndTheSale]

I'm asking for a friend who has recently started working two part time jobs.

Total weekly hours are 45.

The combines salary for the two jobs is approx 20K.

There is no one in the second and recently acquired part time job who knows anything about payroll. Friend has been told to sort it out with tax office.

What does this actually mean? Who do they speak to?

Should the second job be taxed at higher rate, even though the overall earnings from both jobs is only 20K?

The person also receives childcare vouchers.
Any help really appreciated and welcomed.

Pretty common in my line of work (nannying).

When they start the second job, they complete a P46/new starter form ticking box C. HMRC should then adjust the tax code in the jobs. If after two months that has not happened then your friend needs to contact HMRC.
Initially the second job will be done on BR tax code which will do Income Tax at 20% on all the income from that job.

Firstly they need to be working in each job and both employers need to have PAYE schemes. Ask for PAYE reference for their PAYE scheme.

They then call HMRC on 0300 200 3300. Automated system at first - Tax Code - is the keyword to use when answering question about why they are calling.

They can then ask for tax to be split between the two jobs. They need to have an idea of annual income from each job. They need to ask for Cumulative codes so that it takes account of tax already deducted. HMRC will then issue coding notices to the employers and these will take effect on the following payroll run. The total of the tax codes should equal 1100.

Example:
500L + 600T = 1100

Income Tax is calculated across all jobs, so initially they will pay too much tax but once their 1100L tax code is split between the jobs, due to asking for a cumulative code, taxes paid since April will be taken in to account making the overall tax deducted correct.

As their earnings are under the threshold for Higher Rate Income Tax, they will be taxed at the same rate in their second job as in their first. The difference is the amount of personal tax allowance that is allocated to each job (the amount of Income Tax free earnings).

National Insurance is calculated on a per job basis so is unaffected.

They can try using the new online service. HMRC are working on a way to make this process a bit easier.

www.gov.uk/check-income-tax-current-year

Does one or other job have a total salary greater than £11,000 after any deduction of childcare vouchers and pension contributions which is fixed (ie not a zero hours contract)?

If so then the easiest thing is for that job to use the "normal" tax code which uses the £11,000 tax allowance, and the other job to use a "tax everything at 20%" tax code.

If both jobs are around £10k or can be variable then it is better to split the tax allowance across the two jobs.

Either way she just needs to phone the tax office to request the tax codes to be calculated for the two employers.

She needs to call the tax office and speak to them and if appropriate they will issue new tax codes for the jobs

This is really useful, thanks for such detailed responses.

Really appreciated.

She can do it online www.gov.uk/personal-tax-account