Tax code 0211L/0. Temping for agencies

[bruce24]

Hello guys.
Currently I did change my agencies. Agency number 1 is my primary agency where I am on 1100L tax code. I registered with Agency 2 two weeks ago, starting work there. In the beginning i received 1100L tax code from them. But one week ago my primary agency 1 called me to do 2 days assignment for them. I agreed and this week received a 0211L/0 tax code from agency 2 where is my new job now. Why that happend? How can I fix it?
Thanks
Bruce

 

[Newchodge]

You can only have a total tax code of 1100. You can spread it between 2 different employers,for example 300 on employer 1 and 600 on employer 2. You need to discuss this with HMRC.

 

[bruce24]

You can only have a total tax code of 1100. You can spread it between 2 different employers,for example 300 on employer 1 and 600 on employer 2. You need to discuss this with HMRC.

yes, but I would only stay with agency 2 employer and be on 1100L in there. What I need to do than, just stop work to agency one and this tax code gets normal?

 

[Newchodge]

You need to ask HMRC to allocate your tax code to whichever employer you expect to do most work for. You will need your employer's PAYE reference and your own NI number. Contact details are here. https://www.gov.uk/government/organ...ries-for-individuals-pensioners-and-employees

There is no need to stop working for the other agency, just be aware that you will pay tax on all the money you earn from them.

 

[bruce24]

You need to ask HMRC to allocate your tax code to whichever employer you expect to do most work for. You will need your employer's PAYE reference...

What is employer's PAYE reference? How can I get one? I am sure this is not on my payslips.

There is no need to stop working for the other agency, just be aware that you will pay tax on all the money you earn from them.

But how that works when I started new job 2 weeks ago all was fine. 1100L and this week I am on 0211L. Theoretically speaking what if I do nothing just stop working for agency 1 and not receiving salary from them, does it mean that HMRC automaticly find out the correct tax code.? If not that means I am overpaying my taxes aint it?

 

[Newchodge]

Your employer is identified to HMRC by their PAYE reference. You need to ask them for that.

When you started your new job you would have been asked for new starter information. Your new employer would have allocated you a tax code based on that information. If it was wrong, and you were not paying enough tax, HMRC would have asked them to use a different code to take into account your income from another employer. They will always advise your employer if you are paying too little tax. If you are paying too much they will do nothing.

Unless your employment with agency 1 is terminated and you get a P45 to give to employer 2 (usually before you start working for them) HMRC will assume that agency 1 is using your main tax code. they will not change it. You have to contact them, as I have now told you twice.

 

[SteveHa]

Each employer tells HMRC every time that you are paid how much you have earned, and how much tax and National Insurance you have paid. HMRC use this information to try to estimate your likely income from each for the year, and they will divide your tax code between the jobs based on this estimate.

They don't always get it right, particularly if your pay from each is erratic, and you can simply call them and have them divide it however you want. You don't need the reference numbers, just your National Insurance number.

 

[bruce24]

Thanks guys very much. Just one thing that bothers me is how the HMRC contacts my employers. Is it by email or what? This suppose to be messy for a big number of people. Anyway I am gona call them and ask to change my tax code for employer number 2 as a primary, since i have no any income from employer 1. Hopefully it will work. Could I possibly ask if I over paid tax in this tax year?

 

[SteveHa]

The agencies will use specialised software for running the payroll, which will grab the information from HMRC each month.

 

[Newchodge]

HMRC only contacts your employers to notify them of a change in your tax code. They give them no other information.

 

[bruce24]

ok so I did call them they will issue me with a new 1100L tax code. This will take 72 hours. Are you sure that I dont need to inform my employer about that changes, this will be done automatically? So next friday my tax code sort? I was wondering about other issued cause they asked me whats the probably salary I am expecting from a new job. I said 25 K a year. Does this influance how much tax I will be paying now? I am paid weekly. Thx Bruce

 

[SteveHa]

Your job with £11,000 will be taxed at 20% on anything above £11,000 (up to a maximum of £32,000 - after which 40% will be paid).

Your second job will probably be taxed at 20%, unless HMRC issue a D0 tax code, in which case it will be taxed at 40%.

 

[Newchodge]

ok so I did call them they will issue me with a new 1100L tax code. This will take 72 hours. Are you sure that I dont need to inform my employer about that changes, this will be done automatically? So next friday my tax code sort? I was wondering about other issued cause they asked me whats the probably salary I am expecting from a new job. I said 25 K a year. Does this influance how much tax I will be paying now? I am paid weekly. Thx Bruce

You can tell your employer if you wish, but it will make no difference. They will not change your code until they receive HMRC notification. Whether this will be in time for this week's payroll will depend on how quickly they get it and how quickly they can make changes. If not it will be put right next week, including repaying any overpaid tax with that employer.

They wanted to know your likely income to determine what code to give your other employer.

 

[bruce24]

. If not it will be put right next week, including repaying any overpaid tax with that employer

so they gona pay me back that overpaid money next week?

 

[Newchodge]

Read what I said.

 

[bruce24]

well I am asking about overpaid tax since I think that it happend to me like I sorted out my tax code some time ago and didnt received any payback. But I thought I should.

 

[SteveHa]

You should get the refund from your main employer (with the 1100L tax code) via your pay. However, I suspect that your other employer may have operated a tax code other than BR, in which case, they are likely to have a tax code issued on a month 1 basis, which does NOT back calculate.

I'd be very surprised if your tax is correct at the tax year end (5 April), and would expect a further adjustment to be needed after the year end.

 

[bruce24]

Once it happened like they after some time fix my tax code from BR to 1100L and than I did paid only NI but not further tax, for couple of months. Is this so called refund? Or what if I call them and ask if i did overpaid a tax? how this work, do they if pay pay one year back or one employer back?

 

[SteveHa]

Under normal circumstances under PAYE your tax is calculated for the whole year back to the previous 6 April 2016, and then any tax that you've paid since then is deducted from the total. The difference is what you pay in that month or, if it's negative, you get back. You shouldn't need to do anything - it's an automatic process.

 

[bruce24]

The difference is what you pay in that month or, if it's negative, you get back. You shouldn't need to do anything - it's an automatic process.

but I am paid on weekly basis...

is there any exception when it's not an automatic process? What if I ve been changing my employers many times during this year?

 

[SteveHa]

Weekly/monthly doesn't matter. The principal and process is the same.
PAYE is designed to be able to handle multiple employments, and so it shouldn't matter.

 

[bruce24]

The point is I am a bit sceptic about getting back that money I overpaid last week. Theoreticaly if I overpaid tax this tax year, thay should give me all overpaid automatically yes?

 

[SteveHa]

Yes. That's the way the system works. The only time that it wouldn't is if HMRC put you on a week 1 basis tax code (usually shown by "W1/M1" or "X" after your tax code. In that case, it will be HMRC's responsibility to repay you, but not until after the end of the tax year on 5 April.

 

[bruce24]

ok. in normal case how is it paid, during the next wages? for example assume if i overpaid 400 £ tax, will it be paid all at once, without any confirmation or whatever?

 

[Newchodge]

Every week your employer should calculate the total amount of tax you should have paid in their employment for the year to that point, and take tax off or give you a refund.

Your employer can ONLY deal with tax paid through them, not through another current employer.

 

[bruce24]

Every week your employer should calculate the total amount of tax you should have paid in their employment for the year to that point, and take tax off or give you a refund.

what if they dont...?

Your employer can ONLY deal with tax paid through them, not through another current employer.

yes, so how can they know about each other? After the year how they know I earned 4k here, 4 K here, 10 K there? how is the tax corrected pr callculated in that case?thx

 

[Newchodge]

If they don't, you ask them why not.

Every employer notifies HMRC of your wages every time they pay you. Separate current employers know nothing about each other. If you tax affairs are complicated HMRC may ask you to complete a self assessment.

 

[bruce24]

I just received my payslip and the tax code still wrong - 0222L, Thought I called HMRC on friday. What to do in that case?

 

[Newchodge]

Wait.

 

[SteveHa]

One week is a short space of time. Be patient.

 

[bruce24]

Hi guys, since some time I stay only with one employer. I was for normal tax code 1100L all this time, but yesterday week one started onad checked my payslip I am again on BR, while others on 1150L. How comes? what can I do? why I was rolled up on BR again automaticaly. I have no other source of income.

 

[SteveHa]

Call HMRC again. Their systems are not the best.

 

[Newchodge]

Your tax free allowance is 11,500 this tax year. HMRC has allocated it all to one employer, requiring that all other employers charge tax on 100% of your earnings. Over the whole tax year this will probably end up right, but may mean you pay too much tax in some weeks/months. Contact HMRC and discuss how you would like your tax code allocated between different employers.