Is getting a second job worth it

littleange

I assume that they will take the 31% of all earnings from the second job and you will probably have to tell them it's your second job so they can do it correctly, otherwise you might find you owe the extra national insurance.

So I'd work on that assumption, so if you are getting £6 an hour in your second job, you are probably looking at about 69% x £6 = £4.14 an hour after deductions.

chrisbur

kelloggs36 wrote: »

Surely you only get one national insurance free amount - just because you have 2 jobs doesn't mean you don't pay it on the second job does it? I would have thought that because you have not paid it on the first £105 in the first job, that you then pay it on all your earnings in your second job up to the maximum.

If your two jobs are with two different employers who are not associated with each other, then each job is treated seperately for national insurance purposes. This means that in each job you get an earnings threshold allowance, currently £105. If your two jobs are with the same employer or associated employers then that employer should work out national insurance on the total pay of the two jobs unless they are not able to do this, then it goes back to being done seperately. This applies to any number of jobs and is not limited to two.

http://www.hmrc.gov.uk/guidance/cwg2.pdf
From Chapter 3 of CWG2(2008)
Employer Further Guide to PAYE and NICs

65 An employee has two or more jobs
with different employers and each
one pays the employee
[FONT=DILHG O+ Stone Sans,Stone Sans]If an employee has another job or jobs with a different employer or employers, work out NICs in the normal way on the earnings you pay the employee. Ignore the payments made to the employee in the other job(s).
[/FONT]

chrisbur

sezzie24 wrote: »

I work 7 days a week as a Secretary Mon-Fri which I get my tax allowance on and as a Receptionist at the weekend where I pay 20% tax. It means I only earn approx £39 a day from my weekend job which isn't much but it means my take home at the end of the month is about £160 better.

If you are getting £39 a day then even on months with only eight weekend days in it you should gross £312. On that you pay £62.40 tax which gives you £249.60. If your two jobs are with the same employer then you might pay national insurance of 11% which would be £34.32 but you should still be left with £215.28.

sezzie24

chrisbur you are correct on the above, I didn't work my earnings out properly. They are two different employers and I'm sure about my NI contributions. I barely get to see any of it anyway cos it all goes out on bills etc which is why I need the two jobs

littleange

chrisbur wrote: »

If your two jobs are with two different employers who are not associated with each other, then each job is treated seperately for national insurance purposes. This means that in each job you get an earnings threshold allowance, currently £105. If your two jobs are with the same employer or associated employers then that employer should work out national insurance on the total pay of the two jobs unless they are not able to do this, then it goes back to being done seperately. This applies to any number of jobs and is not limited to two.

http://www.hmrc.gov.uk/guidance/cwg2.pdf
From Chapter 3 of CWG2(2008)
Employer Further Guide to PAYE and NICs

65 An employee has two or more jobs
with different employers and each
one pays the employee
[FONT=DILHG O+ Stone Sans,Stone Sans]If an employee has another job or jobs with a different employer or employers, work out NICs in the normal way on the earnings you pay the employee. Ignore the payments made to the employee in the other job(s).
[/FONT]

I didn't know this, interesting.