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Tax on second income

Hi
I have been offered a second job next year and I need to make sure that it is worth my while.

I currently earn £36000 a year and my personal tax allowance for 2008-2009, after deductions for taxable expenses is £5849. I assume I am therefore correct in saying that I am taxed at 20% on the £30151 after my tax allowance has been used up.

If so, does this mean that seeing as I can earn up to £34,800 before jumping to the 40% tax bracket, I still have £4649 to play with before reaching the higher tax threshold?

Please let me know if I have got this right ASAP as I need to make a decision on the second job by the end of the week.

Thanks

Paul

Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    yes ...
    unless you contribute to a pension in which case the pension contributions are tax free so you could earn more before paying 40% tax.
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