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  • FIRST POST
    • mini_lidi
    • By mini_lidi 15th Jul 17, 6:30 PM
    • 200Posts
    • 230Thanks
    mini_lidi
    2nd Job Tax Question
    • #1
    • 15th Jul 17, 6:30 PM
    2nd Job Tax Question 15th Jul 17 at 6:30 PM
    Hi All,

    I am looking to get a 2nd job to help save some extra pennies for a mortgage application. But I'm confused with the tax on it
    I understand the tax code would be BR so 20% but as my currently salary is £33k a year.

    How much is it worth earning before I have to pay the higher tax rate? Sorry if that's incorrect.
    Will-I-Am Soon to be a MILLIONAIRE!!
Page 1
    • polymaff
    • By polymaff 15th Jul 17, 7:45 PM
    • 1,589 Posts
    • 678 Thanks
    polymaff
    • #2
    • 15th Jul 17, 7:45 PM
    • #2
    • 15th Jul 17, 7:45 PM
    Hi All,

    I am looking to get a 2nd job to help save some extra pennies for a mortgage application. But I'm confused with the tax on it
    I understand the tax code would be BR so 20% but as my currently salary is £33k a year.

    How much is it worth earning before I have to pay the higher tax rate? Sorry if that's incorrect.
    Originally posted by mini_lidi
    Typically, another £12k - but depends on your circumstances.
    • Dazed and confused
    • By Dazed and confused 15th Jul 17, 7:46 PM
    • 1,466 Posts
    • 610 Thanks
    Dazed and confused
    • #3
    • 15th Jul 17, 7:46 PM
    • #3
    • 15th Jul 17, 7:46 PM
    Salary is irrelevant it's taxable pay which counts. This can be noticeably less than salary if involved with salary sacrifice or are in employers pension scheme.

    But, if taxable pay is £33,000 at current job you can earn another £10,000 this year before paying higher rate tax. £12,000 if you don't live in Scotland.

    This also assumes you have absolutely no other taxable income (which in all honesty is unlikely given you are using this website )
    • 00ec25
    • By 00ec25 15th Jul 17, 7:47 PM
    • 4,274 Posts
    • 3,600 Thanks
    00ec25
    • #4
    • 15th Jul 17, 7:47 PM
    • #4
    • 15th Jul 17, 7:47 PM
    How much is it worth earning before I have to pay the higher tax rate? Sorry if that's incorrect.
    Originally posted by mini_lidi
    would you rather earn an extra £0 or an extra £0.60?

    what does it matter if you pay a bit at higher rate? You do understand you only pay 40% on the amount over threshold?

    the threshold is £45,000 (basic rate 33,500 + 11,500 personal allowance)
    https://www.gov.uk/government/publications/tax-and-tax-credit-rates-and-thresholds-for-2017-18/tax-and-tax-credit-rates-and-thresholds-for-2017-18
    Last edited by 00ec25; 15-07-2017 at 9:46 PM.
    • Dazed and confused
    • By Dazed and confused 15th Jul 17, 8:01 PM
    • 1,466 Posts
    • 610 Thanks
    Dazed and confused
    • #5
    • 15th Jul 17, 8:01 PM
    • #5
    • 15th Jul 17, 8:01 PM
    Except in Scotland.

    But 00ec25 makes a very valid point, you only pay the 40% tax on the amount over £43,000 (or £45,000).
    • Geoff1963
    • By Geoff1963 15th Jul 17, 11:19 PM
    • 584 Posts
    • 354 Thanks
    Geoff1963
    • #6
    • 15th Jul 17, 11:19 PM
    • #6
    • 15th Jul 17, 11:19 PM
    for a mortgage application
    If the earnings from the second job can be taken into account, that might get you a better deal, even if you saw almost none of it.
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