Theoretically, you shouldn’t have to do anything.
HQ fix whatever has gone wrong - HMRC get updated - any knock-on effects are fixed by HMRC.
I’m certainly no tax expert, but I’d imagine that those for whom the additional estimated income pushes them further over the upper earnings limit may find more tax taken off their VA until the situation is resolved. I guess that after that, the overpayment may be credited in the rest of the period (i.e. they pay less tax on VA until is balances again). In the worst case they may have to wait for a P800 and repayment in Jul/Aug next year.
It’s a nonsense apology to say that it was unforeseeable. Of course it’s foreseeable that there may be tax code implications if they tell HMRC that we have a new employer without telling them that the old employment has ended.
What they mean by it being unforeseeable is “we didn’t think”
For me at least, HMRC are well aware that ‘employment’ with “RAF Reserves” has ended and JPA has begun. I can’t be the exception.
Hence no change to my tax code; just this odd £15,000 estimated income…
Without doing the calculations, I guess that people earning over £25,000 ish might find that they are noticeably bumped over the upper earnings limit and then pay 1/12th of 40% on whatever additional amount that is.
Ugh… NI… That’s a black art I’m glad to have little to do with.
I would think though, that any tax implications from this hickup should go unnoticed until we actually start getting paid through JPA. Given that most people will have their personal allowance on their main job they shouldn’t notice any change there… That tax code should remain the same, with only the code applied to JPA affected. Some may jump from BR to [whatever the next code is… D0?].
To be fair the HMRC app/site could be abit confusing as it has estimated amounts in huge bold text, they actually have no impact, and the tax code in small text. Same D0 that applied to ‘RAF Reserves’ has been applied to JPA but has £5,000 as estimated income. My main job tax code has stayed the same.
Good. That’s what I was hoping/expecting to be the case.
This will most probably turn out to be resolved before it becomes any sort of issue. Any additional overpayment of tax will only occur if and when HQ / JPA (whoever is actually responsible for paying) takes the tax off our VA payments, based upon whatever the estimated tax has been worked out to be… Given that they are aware of the problem one would expect that the issue will be resolved before payments are made and that no additional tax will be taken off.
For me they kept both employers on there and I had to phone them to explain the situation because no-one at HQAC had informed them that the RAF Reserve employment had ended. They changed my tax code because of this. So I’m sure that many people have been put in this situation, I can’t be the only one.
They’d changed my main employment tax code rather than my JPA or RAF Reserve one so this month I’m not getting my full pay as the new tax code wasn’t sent to my employer in time for this month’s pay run.
I’m fairly sad in that i open up the HMRC app far too often and am constantly updating my expected Salary. So as soon as i saw that rather large salary expectation for JPA i changed that to something sensible.
Unfortunately ive still got reserves so its still double than ill actually get - but that won’t put me above the next threshold
