You can only receive the independent earner tax credit (IETC) through your main source of income. If you use the ME or ME SL tax code twice (ie, for more than one job) then you’ll receive too much IETC and will end up with a bill at the end of the year.
However, some people with multiple jobs are entitled to IETC but won’t receive it even if they use the ME or ME SL tax code.
You can claim your IETC entitlement after the end of the tax year through a personal tax summary (PTS) or by requesting a special tax code (STC) that will calculate the IETC each payday during the year.
Paul has two jobs - one earning $15,000 with tax code ME and one earning $14,000 with tax code S. Paul is using the correct codes but as the income from his main job isn’t within the eligible income band for IETC the PAYE system will not calculate his IETC.
Date published: 05 Mar 2009