overlap between ending one job and starting another

[Blown2CV]

i am a contractor, but my current gig ends 31 May. I don't get my final pay till 1st July, and I have to be employed by my umbrella until then, and therefore wouldn't have a P45 until after that date.

I have found a new job, which is a perm role, but the aim is to try and start this as soon as possible.

If I was to start this in mid June, clearly at that point I'd have two employments. HMRC would clearly be aware I have two concurrent employments, but is this an issue?

I assume I'd go onto month 1 week 1, partly because I'd probably receive my first pay from my new employer at end June, and possibly even before my final pay for my old role. So, the new employer will have to do a payroll before they have my P45. However, this would just get trued up in the self assessment, so I would only pay tax for the earnings I have had.

Are there any other impacts I haven't considered, or is this otherwise a bad idea?

thanks

[RSTurboPaul]

I seem to recall I got stung for Emergency Tax rates on the new job while doing similar, but that was bog standard PAYE stuff so probably no help here lol

[Blown2CV]

RSTurboPaul said:

I seem to recall I got stung for Emergency Tax rates on the new job while doing similar, but that was bog standard PAYE stuff so probably no help here lol

well the new role is PAYE, and actually as I am inside IR35 as a contractor I am PAYE today too. I think it would be emergency tax yea, but i am assuming once the P45 is made available in July and I can pass it to my new employer, they will tax me as normal and then any tax that I paid over the odds will just be resolved somehow in the self assessment true-up after next april.

I am making the assumption that having two concurrent jobs is not a bad thing as such, it's just the crossover timeline that fks things up but gets sorted in the long run. So, they just look at whole year earnings and they don't actually care that I had two jobs for a couple of weeks.

Dunno if I am accurate tho...

[Countdown]

It shouldnt be an issue.

You need to tick the right box on the New Starter Form at your new place of work so that they put you on a W1/M1 basis. Then, once they get the P45 through from your Umbrella they'll sort out the taxable YTD and tax paid ytd and Bob's your uncle.

You might get a few fluctuations until it's all gone through the wash over a few pay cycles.

[Blown2CV]

brill thanks this is what I hoped.