tax on a second job

Something Else · 19 Jul 2012 at 00:00

The Halk said:
That's correct - your mother is wrong... 13.5 grand a year... oof. It'll be worth it when you finish your apprenticeship though! If the coalition get their way you'll be paying barely any tax*

*except national insurance which for some reason they manage to do a Jedi mind trick with and everybody ignores.

i think that people believe NI is just for the NHS (which is what it was flogged as i think) when in fact it pays for just the same as normal tax

ive been surviving on under 11k per year quite well tbh. i live at home and pay rent which is about £200 which helps my mum out, i have my own car on finance and pay my own insurance and phone bill, i do well enough. ive managed to put together 1k on a computer and also have managed to spend another £800 on camera stuff too so im not struggling. im proper excited about this apprenticeship though, after the first year i will be on £14k i think for 2 years and then once im qualified ill be on £24k ish

winter · 19 Jul 2012 at 00:02

You have to have wages of about 45000 to fall into a higher rate band, and then anything over that 45 will be taxed at 40%, it's safe to say you're well within the basic rate band mate.

Judgeneo · 19 Jul 2012 at 00:04

winter said:
You have to have wages of about 45000 to fall into a higher rate band, and then anything over that 45 will be taxed at 40%, it's safe to say you're well within the basic rate band mate.

Nope, its £37k now

winter · 19 Jul 2012 at 00:06

Minus allowances, so wages of about 45000

winter · 19 Jul 2012 at 00:07

Plus allowances should I say.. Haha you get my drift.

Judgeneo · 19 Jul 2012 at 00:08

winter said:
Minus allowances, so wages of about 45000

I don't think thats how the allowance works...

estebanrey · 19 Jul 2012 at 00:09

Judgeneo said:
Nope, its £37k now

£35k now my friend.

http://www.hmrc.gov.uk/rates/it.htm/

But as winter said that is in addition to your allowance so in effect you can earn up to £43,105 before you start paying 40%

winter · 19 Jul 2012 at 00:12

It is.. The first 8105 is tax free income, then the next 37000 after that, or now 35000 is taxed at 20%, then any extra is charged at 40.

Hxc · 19 Jul 2012 at 00:12

It is. You get 8105 tax free. Then 34,370 at 20%, then over that you are onto 40% up until 150k where you pay 50%.

winter · 19 Jul 2012 at 00:13

Hxc said:
It is. You get 8105 tax free. Then 34,370 at 20%, then over that you are onto 40% up until 150k where you pay 50%.

Yurrrp

.

Judgeneo · 19 Jul 2012 at 00:15

I was under the impression it was 0-8,105 tax free, 8,105-34,370 at 20%, 34,370 - 150,000 at 40%

Learn something new everyday as they say, and with hat I'm off to bed

estebanrey · 19 Jul 2012 at 00:16

Hxc said:
It is. You get 8105 tax free. Then 34,370 at 20%, then over that you are onto 40% up until 150k where you pay 50%.

It gets even more complicated than that as once you earn over £100k (Net) you start losing your personal allowance by £1 for every £2 over earnt.

Nothing's ever bloomin simple is it

Dist · 19 Jul 2012 at 00:29

So if after £100k you start losing your personal allowance, I'm guessing that is when it may be worthwhile going for one of the perfectly legal tax avoidance schemes that the government keeps publicising?

estebanrey · 19 Jul 2012 at 00:35

Dist said:
So if after £100k you start losing your personal allowance, I'm guessing that is when it may be worthwhile going for one of the perfectly legal tax avoidance schemes that the government keeps publicising?

Not that I wanna defend the rich too much but I do think if you're going to have a personal allowance it should be for all. Even if for no other reason than it makes the system a tad easier to understand/calculate.

Magic_x_uk · 19 Jul 2012 at 09:15

I have a full time and part time job. First job is normal tax rate 810l I believe, second jobs I am on BR tax. Plus remember you also have to pay national insurance contributions on your second job as well.

I do not like having to pay 2 lots of NI each week/month. That does annoy me.

But hay ho.