Tax on a 2nd Job

Soldato
Joined
28 Mar 2005
Posts
9,196
How does tax work on getting a second job?

id be looking at getting a bar job evening. wondering how much i am likely to get taxed :(
 
Soldato
Joined
28 Mar 2005
Posts
9,196
well there is a opertunity in the coming year to go oz for along time! and i would need to save like mad to pay off some bits in that time!!
 
Soldato
Joined
28 Mar 2005
Posts
9,196
well if i got a job in a bar would be + 20 hours every week at £5 a hour, £400 a month extra, but then 22% tax each month?
 
Man of Honour
Joined
17 Feb 2003
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29,615
Location
Chelmsford
Only as much as he would be if he was earning the same amount extra in his first job.

True.

Your second job will be fully taxed without any allowances since only one employer can posses your P45.

At the end of the tax year, your tax can be recalculated and any money owing will be paid back. Chances there won't be as as haircut said, it's just an extension.

The only time to be carefull is if you earn money in one job which is just below the 40% threshold. A second job may take you above this but you will only pay basic rate which means you will have to make up the difference.
 
Soldato
Joined
30 Dec 2003
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5,770
Location
London
You will be taxed heavily my friend, so not recommended unless you REALLY need the cash
As has been said, the tax will most likely be the same. Provided you earn over £5435 per year in your first job, and overall are still within the Basic Rate Band, then your second job tax will all be at 20%.

You will most likely end up paying less national insurance than if you just earnt more from your first job though, as this is only charged for earnings in excess of £103 per week for any particular job on PAYE - not cumulatively over all income.
 
Soldato
Joined
30 Dec 2003
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5,770
Location
London
guess i'll have to work out exactly how many hours i can do extra a week then lol
You only pay NI on the percentage above - you don't lose money for making more. 11% is hardly all of your money. If you earnt £200 per week, you'd only pay £10.45 in NI. The £40 in tax is a bit more though!
 
Caporegime
Joined
28 Jun 2005
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48,104
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On the hoods
NIC on multiple employments is a nightmare.

As for tax on multiple jobs... You can have a P46 for a second job which allows them to process your tax code in some way so you won't just pay BR and then have to make up any HR tax that you slip into as Huddy said (although that sounds unlikely given the numbers the OP has mentioned). I know some of the theory of it, but don't know fully how it works in practise.
 
Joined
5 Aug 2006
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11,183
Location
Derbyshire
you will get taxed heavily on it, however you must ring the tax office, so they can adjust your tax alowance on each job. Either way, if you earn over circa 5600quid a year you have to pay tax wether you have 1 job or 10. When i had multiple jobs I just waited til the end of the taxyear and claimed what I was owed back, easiest way imo.
 
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