"Double Tax" Query

4p · 28 Jun 2014 at 16:37

Afternoon. Did a quick search couldn't find anything.

Need some help and I'm going to put forward a hypothetical situation so..

Job 1: 17k Salary
Job 2: 6-7k est. Part time

How does tax work in that situation?

I cannot make sense of the info on HMRC

Deleted member 66701 · 28 Jun 2014 at 16:38

Speak to your accountant, they'll be able to explain it.

Also, is the 1st job not part time as well if it's only £17k?

Dis86 · 28 Jun 2014 at 16:42

amigafan2003 said:
Speak to your accountant, they'll be able to explain it.

Also, is the 1st job not part time as well if it's only £17k?

No. Some jobs pay that amount.

Haircut · 28 Jun 2014 at 16:43

You would pay exactly the same tax as if you had one job earning £23K.

You'll most likely need to let the employers know about the other job to ensure that your PAYE gets calculated correctly though.

bJN · 28 Jun 2014 at 16:44

You'd get taxed as normal for those amounts?

Job 1 is the main job, and nothing else needs be considered. The second job will be taxed as a second job, so you need to inform the payroll department of that second job so they can adjust accordingly. :confused:

Mynight · 28 Jun 2014 at 16:45

http://www.hmrc.gov.uk/incometax/check-multiple-codes.htm#4

Pretty sure it means job 2 would be subject to 20% tax on all of it as job 1 has already used the tax free allowance everything after that is subject to basic tax.

I think its p46 from the second employer to give to Hmrc and they'll allocate a different tax code to the second. Classing job 1 as your main employment.

4p · 28 Jun 2014 at 16:46

Haircut said:
You would pay exactly the same tax as if you had one job earning £23K.

You'll most likely need to let the employers know about the other job to ensure that your PAYE gets calculated correctly though.

bJN said:
You'd get taxed as normal for those amounts?

Job 1 is the main job, and nothing else needs be considered. The second job will be taxed as a second job, so you need to inform the payroll department of that second job so they can adjust accordingly.

Contradictions here, no?

4p · 28 Jun 2014 at 16:49

Mynight said:
http://www.hmrc.gov.uk/incometax/check-multiple-codes.htm#4

Pretty sure it means job 2 would be subject to 20% tax on all of it as job 1 has already used the tax free allowance everything after that is subject to basic tax.

Okay so would the following be right?

17k gets taxed to £14,514.72

6k gets taxed @ 20% to 4.8k

?

Mynight · 28 Jun 2014 at 16:51

4p said:
Okay so would the following be right?

17k gets taxed to £14,514.72

6k gets taxed @ 20% to 4.8k

?

Indeed. Well at least that's what it suggests. I'm unsure if NI is also taken from second job though (I would assume it is).

You need to get a p46 form from second employer to let Hmrc know to allocate the correct tax code(edited first before you quoted sorry).

bJN · 28 Jun 2014 at 16:52

Not contradictions at all. The second employer needs to know about the first job if the situation arose that your tax needs to change. The tax code for the second job is different, in your situation I would imagine it to be the BR PAYE code.

Surveyor · 28 Jun 2014 at 16:53

4p said:
Okay so would the following be right?

17k gets taxed to £14,514.72

6k gets taxed @ 20% to 4.8k

?

The 17k part is correct.

You'll also have to pay National Insurance on the 6k (£720 I think).

MikeTheNative · 28 Jun 2014 at 16:55

amigafan2003 said:
Speak to your accountant, they'll be able to explain it.

Also, is the 1st job not part time as well if it's only £17k?

?????????????????? Someone needs to get into the real world.

bJN · 28 Jun 2014 at 16:56

Surveyor said:
The 17k part is correct.

You'll also have to pay National Insurance on the 6k (£720 I think).

Correct.

benjii · 28 Jun 2014 at 17:27

Mynight said:
http://www.hmrc.gov.uk/incometax/check-multiple-codes.htm#4

Pretty sure it means job 2 would be subject to 20% tax on all of it as job 1 has already used the tax free allowance everything after that is subject to basic tax.

I think its p46 from the second employer to give to Hmrc and they'll allocate a different tax code to the second. Classing job 1 as your main employment.

First bit is spot on. As for the second job, it's automatically given the BR code and you don't need to do anything.

BDEE · 28 Jun 2014 at 17:30

amigafan2003 said:
Also, is the 1st job not part time as well if it's only £17k?

How obtuse.

Mynight · 28 Jun 2014 at 17:34

benjii said:
First bit is spot on. As for the second job, it's automatically given the BR code and you don't need to do anything.

Arrgh thanks

well I guess that makes it easier.

The p46 bit was grabbed from the money advise service.

make sure HMRC knows you have more than one job (when you start your second job, get a P46 form from your new employer. This should help HMRC allocate the right tax code) ,

https://www.moneyadviceservice.org.uk/en/articles/pay-and-tax-when-working-in-more-than-one-job

benjii · 28 Jun 2014 at 17:36

Mynight said:
Arrgh thanks well I guess that makes it easier. The p46 bit was grabbed from the moneysavingforums wiki thing.

I believe the p46 is for if you have two part time jobs and want to split your tax allowance over both of them.

Mynight · 28 Jun 2014 at 17:43

benjii said:
I believe the p46 is for if you have two part time jobs and want to split your tax allowance over both of them.

Makes sense thank you.

Sorry I said it was taken from the wrong site was actually money advise service (edited my post).

MrMoonX · 28 Jun 2014 at 18:51

Your first job uses all your tax free allowance, so you pay BR on second

Energize · 28 Jun 2014 at 19:00

amigafan2003 said:
Speak to your accountant, they'll be able to explain it.

Also, is the 1st job not part time as well if it's only £17k?

Please tell me you're trolling, not knowing that £17 is a common full time wage and believing that people on paye have an accountant. :rolleyes:

"Double Tax" Query

Deleted member 66701

Deleted member 66701