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More than one supply agency and paying tax?

Discussion in 'Supply teaching' started by ruby_neurotic, Oct 11, 2012.

  1. If you work for more than one supply agency in one week what happens to your tax? Do you pay more than the usual 20% because you have more than one employer?
    I'm absolutely clueless about this and I'm trying to work out if it's worth working for more than one agency!
    Thanks for any advice you can offer :)
  2. buryblade

    buryblade New commenter

    As I understand it you should declare one agency your main employer and send them your P45. You will then need to fill in a P46 form for your other agencies and will end up paying too much tax on any work you do for them. You should be able to claim back any overpaid tax at the end of your tax year. However I am not an expert, and would recommend that you contact your local tax office to check.
    pepper5 likes this.
  3. Hi. If you are getting similar work from the agencies you can phone the Inland Revenue and get them to split your tax code so you have personal allowance against both jobs. You can have one as a main employer and the others on BR in which case you will pay a flat 20% tax. You will not pay the high 40% D code unless the Inland Revenue think you will earn a wage that will take you over the higher rate, lets face it on supply it never happens. When you phone the IR they will ask you to estimate what you will earn from each employer and help you to split your code if that is what you want. At the end of the tax year collect your P60s together add them up and the tax and check what you have paid with an on-line calculator (http://www.listentotaxman.com/) if you have paid too much you will be able to claim it back. Beware agencies you are signed to, but end up not working for, ask them for a p45 declaring you have earned nothing or this can stop the refund. The IR are helpful on the phone. I have worked several jobs for a few years now and I am now back in school on a part-time contract and hopefully my supply will be with the same school so that goes through one tax slip. I also have a seasonal job in a museum which ends on the 4th November and work on a 'as needed basis' for another employer.. tax has been complicated but is now sorted with my allowances against my main job. Ir contact details here http://search2.hmrc.gov.uk/kb5/hmrc/contactus/view.page?record=hpkspulskxM I also have a template letter for claiming tax back I can e-mail you if you PM me if you do get to April and find you need to claim back.
  4. jubilee

    jubilee Star commenter

    Make sure that you are claiming all your professional allowances for tax relief. Taht increases your tax code (your tax-free allowance)and thus reduces the tax that you pay.
    You can go back 4 tax years if you haven't claimed int he past.
    The GTC fee, chargeable in past tax years (not this one any more) was eligible for tax relief.
    All Union fees are eligible in whole or in part. Your union will tell you what fraction of the subs is eligible. I know that it's two thirds of the NUT subs and nine tenths of the ATL subs.
    If you have to provide or laundr/maintain a uniform at work, you can claim a Uniform Allowance. In teaching, this mainly applies to those who have to use a PE kit. You can claim the allowance even for a school issue kit if you have to maintain and launder the kit and your employer does not provide laundry facilities for you. I've claimed for several years based on needing to have a PE kit in the car for possible use for part or all of a supply day. The rules are that it should be clothing/footwear that you use wholly and exclusively for work purposes. Th Inland revenue accepted my explanation for having to keep a kit available for work use at all times. The allowance for the past 3 or 4 years has been £60 per year, saving me £12 in tax as a 20% taxpayer.
    BR tax means 20% tax on all your pay from that employer. BR can end up being exactly the right rate of tax if you have/will earn your full tax code allowance with the employer that manages your tax code. I've split my tax code in the past but it's a guessing game on what you might earn with each agency and I reverted to have a main employer operating all my tax code and then sorting out any rebate at the end of the tax year when all P60s were received.
    You can change the tax code employer mid-year if the one with your tax code is not getting you as much work as another employer.
  5. hammie

    hammie Lead commenter

    if you have no planned income for August, do what i do and work completely on basic rate. A cheque arrives every August for hundreds of pounds and helps me survive the summer
    schoolsout4summer likes this.
  6. jubilee

    jubilee Star commenter

    Or sign on for JSA when unemployed in school holiday periods and in term-time when work is in short supply.
  7. webrolls

    webrolls New commenter

    The answers applies for both 2012 as the initial question, and for 2017 as well. Regardless of how many sources of income you have, when you are paying tax, the total sum of all of your income for that financial year will be taken into consideration. Just add all the income sources together, and then use a tax calculator to see how much tax and national insurance you owe, and how much you'll take home after all is paid. I hope it helps ;)
  8. historygrump

    historygrump Senior commenter Forum guide

    Ruby one thing you must do is phone the HMRC and allocate your tax free allowance to the agencies/umbrella companies you work for, and you divide the £11500 allowance as you see fit, i.e the agency which may give you the biggest amount of work, gets the biggest slice of the £11500 and so on. This could mean that you virtually no tax if any at all until you earn over £11500.

    That is what I have done, and you may get the tax paid as well, which would be a bonus.
    pepper5 likes this.
  9. blazer

    blazer Star commenter

    What he/she said.

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