Parallel permie role for a short period - tax computations

[Ashwin2007]

Alongside contracting, if we take short permanent employment and discontinue, how do we merge the PAYE/NI computations.

Eg.,

6 April 2010 - 5 April 2011 - Director in Limited company
1 Jan 2011 - 31 Jan 2011 - Parallel permanent employment ended and P45 issued.

Should the limited company's P60 issued for the period ending 5th April 2011 take into account the salary/taxes paid in permanent employment?

[Craig@Clarity]

You will effectively have 2 employment so either your Limited company will have a BR tax code or your short parallel employment will. It's probably likely that the perm job will have a BR (Basic Rate) tax code as it would be deemed to be second employment and your salary taxed at 20% income tax for that 1 month stint. If you have underpaid income tax, it will be sorted out on your personal tax return. You will probably not receive a P60 from the perm job as the P45 will have all the details on it already when you leave.

[Ashwin2007]

Craig,

Thanks very much for your reply. Yes, for the parallel short permanent employment tax was deducted at BR @20%.

I am a higher rate tax payer. Should I compute the taxes now -without waiting for the personal tax return- considering both employments and request for increase in the Second instalment due in July 2011?

[Craig@Clarity]

Put aside another 20% tax due to HMRC by 31 Jan 12. I don't think there is any need to increase your POA for July 11.