What happens with Tax with 3 jobs

Stinky

Stinky

Stinky

Soldato
Joined
28 Mar 2005
Posts
9,250
any idea where i can found out how the tax work if working 3 jobs. all on an employed basis not self employed.

my gf is just about to start 3 separate jobs so looking for advice on how the tax will work, does she need to speak to anyone etc??

thanks
 
Every individual gets the personal allowance, that is the amount you can earn tax free. This is converted to a tax code which tells the employer how much tax to deduct.

The personal allowance is £6475 this year, which gives the code 647L. So with one job you would have that code, and you would get £6475 tax free (spread over the year) and anything over would be taxed at the appropriate rate, which would likely be 20%.

With three jobs, the code will be given to the one employment, and the other two would be taxed with the code BR, which means all of the income is taxed at the basic rate (20%).

So, if one job will bring in an income of more that the personal allowance, the other two will have the code BR, and all will be correct.

If none of the jobs are over the personal allowance then you can ask hmrc to split the allowance. For example:
Job 1 - £3000
Job 2 - £3000
Job 3 - £3000

so, total income £9000, of which £6475 can be earnt tax free. HMRC could split the allowance so that £3k goes to job 1, and £3K to job 2 and the rest, £475 goes to job 3. This would give the following codes:

Job1 - 300L
Job2 - 300L
Job3 - 47L

So, no tax would be paid on jobs 1 and 2, as there are enough allownaces to cover the income, and £2521 of job 3 would be taxed at 20%.
 
chippie covered it pretty thoroughly, but assuming one of the jobs is a "proper" job earning at least her personal allowance but below the higher earning threshold the others will just be taxed at basic rate. I'm on the iffy ground where my second job is likely to take me over the higher end of the basic rate band this year, not sure how it will work then, find out before april I guess
 
Abraham said:
chippie covered it pretty thoroughly, but assuming one of the jobs is a "proper" job earning at least her personal allowance but below the higher earning threshold the others will just be taxed at basic rate. I'm on the iffy ground where my second job is likely to take me over the higher end of the basic rate band this year, not sure how it will work then, find out before april I guess
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During this year, nothing will happen. At some point after the end of the year you will get a calculation through the post telling you that you have underpaid tax for the year, and it will be collected through a future years tax code.

Then, when HMRC know you are liable at the higher rate, your code will be adjusted and the basic rate band at your main job will be restricted, resulting in a lower code, so that the correct amount of tax is collected.

Or you could ring HMRC now and tell them what your estimated earnings for this tax year will be for each job, and they will adjust your code now.
 
What happens is that at least one employer will balls it up and you'll have to reclaim or repay the tax at the end of the year.
 
vonhelmet said:
What happens is that at least one employer will balls it up and you'll have to reclaim or repay the tax at the end of the year.
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Which is why you should always check what tax codes your employers are operating, and compare them with the codes HMRC have sent you, or call HMRC to check what codes you should have.
 
A few years ago you had to pay 40% tax on non-primary jobs. This was a total pain for people who liked working lots of different jobs for experience / variation.

This changed to a system of allowances, and chippy has properly covered this.
 
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