Hi forum. Can you help? During my resettlement (annual leave) I will be undertaking paid work. The company and I want to keep it legal with the taxman etc... What do I have to do when I start getting two incomes for a couple of months? Do I have to do anything?
Contact the taxman and explain what your situation is. I had to do this, and honestly, they aren't all THAT bad. I got lot of help. Didn't help, the stupid bint in my resettlement office telling me that i COULDN'T earn two wages. Cnut.
1. Get CO's permission in writing to work for second company whilst you are still technically in the mob.
2. New company tax you on "emergency tax".
3. When final day is done, within about 2 weeks you get a P45 in the mail.
4. Give P45 immediately to payroll and ask them to recalculate your tax.
5. You should get an immediate reduction in tax to offset the immense tax you will pay while Aunty Betty is still paying you. Hopefully all sorted by end of the tax year.
6. If not, you get an adjustment to next year's tax code to offset any overpayment that can't be dealt with this year.
7. Unless some form of self-employment is involved, or you have to complete a tax return for other reasons, do not try and fcuk any one over, because neither the MOD nor HMRC have much tolerance for that kind of thing.
For anyone is very tempting to avoid the taxman, specially in your situation. However, the advice given here shows that the taxman is someone you do not mess with. If I was you, I would declare both, the grief you could get from HMRC isn't worth it.
Your best bet is the advice given by roadster280 and either way contact the taxman, just to be on the safe side of things