Second Job + Tax = Confused

IrishFella

Right, tax confuses me to no end. Here's a scenario for anyone who might be able to help.

My main job, as airline cabin crew, last year brought in approximately £22000, however only £17300 of that was taxable as I receive some payments tax free due to the nature of the job. My tax code is 603L.

I have an interview for a second job, flexible hours, but let's say, for argument's sake, I work 14 hours a week at £6.50 an hour = £91. (Not accounting for the odd Saturday at time and a half or Sunday at double time)

I understand that I would have the BR code on the second job. This bit I understand well enough.

Where I get confused is with National Insurance.
Would I have to pay NI on the second income?
What class of contributions?
I'm contracted out of the SP2 - does this make any difference?

This part is quite straightforward with my main job since my employer knows what to do tax and NI wise etc. Throw in a second job and I'm confused.

colhun

The bad news is that you would be liable to pay national insurance just as you do in your main job. The good news is that you get the same earnings level allowance for your second job, meaning that you would only be liable to national insurance in excess of the earnings allowance. Therfore at your stated level of earnings of £91, you would not incurr any national insurance charge.

Being contracted out will not have any effect.

IrishFella

So all my earnings on the second job would be NIC free up to the earnings threshold, even though I am earning over the threshold in my main job?

colhun

Yes, thats correct.

IrishFella

Great, thanks!

poker_face

IrishFella wrote: »

So all my earnings on the second job would be NIC free up to the earnings threshold, even though I am earning over the threshold in my main job?

Ive been paying class 2 NIC for being self employed, but earned under the minimum. How do I claim it back?