Second Job Tax Help

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  • Linton
    Linton Posts: 17,173 Forumite
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    edited 22 January at 3:51PM
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    [quote=[Deleted User];73147294]I am not sure that you are correct on the last bit (from personal experience:)) HMRC won't tax all of the second earnings at 40% - it would not be appropriate if only a small part was liable at 40%! If the op earned 37k and 9k he would be overpaid £1600 on a D0 code on the second job.

    In my experience they will leave the second job at BR and review. Unfortunately for the op they will restrict the PA at the main source to prevent repeats.[/QUOTE]

    Although HMRC have a default way of setting the tax codes for multiple incomes you can ask them to split the tax allowance in any way you wish. This can be done online via your tax account.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    Linton wrote: »
    Although HMRC have a default way of setting the tax codes for multiple incomes you can ask them to split the tax allowance in any way you wish. This can be done online via your tax account.

    The tax allowance is not the issue in this case as it is fully utilised at the main job. You cannot split tax rate bands.
  • choccy31
    choccy31 Posts: 15 Forumite
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    Hi Guys, so far i've been taxed 20% on second job and have another payment due this week so hopefully this will remain at 20% and my main job stays unaffected.
  • 00ec25
    00ec25 Posts: 9,123 Forumite
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    choccy31 wrote: »
    Hi Guys, so far i've been taxed 20% on second job and have another payment due this week so hopefully this will remain at 20% and my main job stays unaffected.
    it is not a question of "hope", it is simply a question of what tax code is in use?
    If BR then you will carry on at 20% since that is the only thing that codes does
  • choccy31
    choccy31 Posts: 15 Forumite
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    Checked my account today and it appears slightly more than 20% has been deducted, leaving me around £27 less than i was expecting, called the payroll up but they do not know what tax was taken, so have to wait till Monday now to find out. They are saying could be addtional tax was taken and eventually would correct itself in future? Last month 20% was taken exactly.
  • molerat
    molerat Posts: 31,866 Forumite
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    Have you bumped over the NI threshold ?
  • choccy31
    choccy31 Posts: 15 Forumite
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    Got my pay slip, the missing amount was NI charged.

    Is there a set percentage for NI, or is it more guess work?
  • molerat
    molerat Posts: 31,866 Forumite
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    https://www.gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions
  • choccy31
    choccy31 Posts: 15 Forumite
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    Thanks,

    Still hard to work out, as I calculate the NI deducted at around just over 3% from my gross amount on my second wage. But not sure if this will be same this month, when i earn a little more?
  • molerat
    molerat Posts: 31,866 Forumite
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    You pay 12% on earnings over £157 per week / £680 per month / £628 per 4 weeks. As simple as that.
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