Second Job Tax

th3d0g

Hi everyone,
I know there are alot of questions answered in relation to second job tax, but I am still having trouble getting to grips with it all.

My current situation is : I have been working 10 hours a week part-time at Tesco Express since December 2002 and am still working there now. I am also a student and have finished my second year and am participating in a paid industrial placement working for Manchester Education. I started this placement on 1st September 2008 and continue until June 2009, then return to university in September 2009 to do my final year.

Additional Details
Tax code for Tesco : '543L'
Tesco Salary : £3000-£3500
Placement Salary (Manchester Education) : £12000

The thing is, I am completely unaware of where I stand concerning tax. Would it be best to ask Tesco about changing my job with them to my second job? Or will the tax office just make these changes there self?

Any help will be much appreciated and thank you in advance. :beer:

jem16

th3d0g wrote: »

Additional Details
Tax code for Tesco : '543L'
Tesco Salary : £3000-£3500
Placement Salary (Manchester Education) : £12000

The thing is, I am completely unaware of where I stand concerning tax. Would it be best to ask Tesco about changing my job with them to my second job? Or will the tax office just make these changes there self?

I'll assume you mean change your tax code as opposed to change your job.

Your tax code (which will be 603L from this month) would be better attached to your placement as you are not earning enough at Tesco to utilise all your allowances.

However tesco cannot change your tax code, only HMRC can. You ned to phone your tax office and explain the situation and ask that your tax code be used at your placement and BR used at Tesco.

chriiiiiiiis

If Tesco is likely to last longer than your employment at Manchester Education, it would be better to keep this as your main employer (I'm assuming Tesco is a permanent role until you leave education?). HMRC will usually change employment with the highest income to your main employer, but so long as the correct amount of tax is deducted, they won't mind which way you have it.

Because you don't earn enough at Tesco to exceed your tax free allowance (6035), you can ask for the unused allowances to be transferred to your employment at Manchester Education.

Assuming you will earn £3500 at Tesco over the year, you have an extra 2535 tax allowances to use at Manchester Education. Which means you can earn £2535 tax free at Manchester Education, or about £211 per month, tax free - Anything above the £211 will be taxed at 20%. This will apply at Tesco as well (if you exceed £3500).

Ring the tax office that deal with Tesco (Lothians Area), their telephone number is 0845 302 1409, and explain to them that you'd like your unused allowances at Manchester Education - you'll need to provide them with Manchester Education's PAYE reference (employer can give you this), your payroll number (shown on a wage slip from Manchester Education) and the date that you started.

th3d0g

Thank you chriiiiiiiis and jem16 for your advice, you have been very helpful.

I do plan on staying at Tesco until I leave education. I am going to call the Tax office and ask them for my extra tax allowance to be applied to my second job.

Thank you both again for the advice. :j