Can someone throw some light on a scenario I have. A person has a part time job of 8 hours a week, due to this they pay no tax or ni on this job as they only earn £159 per month. They then also get a second part time job which is 7.5 hours a week and will be paid £168.00 per month.
Now they dont have a p45 for the second employer as they are still working at the first emplpyer therefore have to complete a p46. Technically they should tick box c stating they have another job but if they do this they will be taxed on all the income on this second job at 20% however the total income for the year is still under the tax threshold! My thinking is they tick box b stating this is their onlly job so they do not get taxed.
Is this right? and has anyone else come across this? due to more and more people have part time jobs surely this is going to become a problem. Advice greatly appreciated.
It is possible to ask HMRC to split the person's tax allowance between the two jobs so that they won't normally pay tax on either employment. The person would then end up with a lower tax code for each job.
