Hi! I need an urgent help with my two jobs taxes.

Pola_2

Hello!

I'm a new in taxes and don't understand how it works. Could you please help me?

I've got a casual job recently which pays about £75 a week. And now I've got a paid internship for three months which will pay £270 a week. I heard that I will need to pay huge tax if I had a second job. Is it true? How much taxes will I pay? Does it make sense to change my first job as a second job in order to lose less money?

Many many many thanx
Pola

frugallass

do you receive wage slips (ie are you on the books) for the first job?

if so, you will pay 20% on your second job

Pola_2

frugallass wrote: »

do you receive wage slips (ie are you on the books) for the first job?

Yes I do receive wage slip for my first job

if so, you will pay 20% on your second job

I don't want to pay 20% on my second job. Do I pay the same on my first job? I mean if not it makes sense to make my first to be my second? In this case 20% will be £15 whereas with second it will be £54!

frugallass

you should visit the hmrc website - there's loads of useful information on there plus contact numbers should you wish to discuss it with them

Pola_2

Thanks, I've been on their site and couldn't find anything specific fo my case. That's why I'm asking for help HERE

frugallass

But HMRC are the 'experts' not HERE

there is a telephone number - give them a ring - that way you can be sure that the information they give you is correct - you may get varying opinions on here but not all of them will be right - you're an individual and they will need to know your individual circumstances

Pola_2

Thank you. I just wanted to know what tax do I pay on my first job. Is it 20% too? Then it doesn't make any difference.

frugallass

It depends on your individual circumstances and your earnings - you're generally allowed to earn up to £6,035 (personal allowance - basic rate) before you pay any tax at all - so if you earn £75 a week in your first job you shouldn't be paying any tax on that anyway

Pola_2

Right... I see. And if I receive £15k as my first job will I pay 20% then?

Conor_3

OK, here's how it is.

Your tax free allowance only gets applied to your main job. So basically you can earn roughly £120 a week on that before you pay any tax and any tax you pay is worked out as 20% of the amount above your tax free portion. A second job is taxed at the standard rate for the full amount.

You can carry on as you are but you'd be paying more tax than you should do but this would be claimed by you at the end of the financial year.

HOWEVER what you can do is swap your jobs around so for tax purposes the higher paid one is classed as the main one and the £75 a week one as the second. BUT, and it's a big but, you will most likely be taxed on BR or Week 1 tax code until the internship get your tax code from their local tax office which could take 6 weeks or more.

Either way, you'll not pay more than you need to in the end but you'll need to submit a tax refund form.

Pola_2

Many Thanks!

I just don't understand this part. What is BR or Week 1? How much will I be charged?

Conor wrote: »

BUT, and it's a big but, you will most likely be taxed on BR or Week 1 tax code until the internship get your tax code from their local tax office which could take 6 weeks or more.

And what should I do to swap them? I have filled the form for my less paid job already stating that it's my only job. Shall I just tell my HR officer that I want to change that?