NI & Tax on two jobs....

Amba_Gambla

Hi
I'm working 2 jobs at the moment, and I assume I'm paying National Insurance on both (I think I'm on emergency tax code too)

I heard somewhere that you automatically get taxted 40% on your 2nd job.... is this true?

If I am paying NI twice, is that right? If not, is there any way of claiming back any that I've already paid?

Any help appreciated

cheers

Ambla

Debt_Free_Chick

No, you don't automatically pay 40% on the income you earn from your second job. You will, however, automatically pay the basic rate (22%) on your second income as your personal allowances will have been allocated to your first income. You will then pay 40% only if the income from your second job goes into the higher rate band.

You should and will pay NIC on your income from your second job too. However, you may be due a refund if you end up paying, in total, too much NIC for the whole year, from both jobs. If you had one job paying £30k you should pay the same NIC as someone who has two jobs earning a total of £30k. NIC is earnings related, not job-related (IYSWIM).

Regards

Amba_Gambla

That makes sense, cheers....

how/when would you end up paying too much NI tho?

(....and what does IYSWIM mean please?!)

Debt_Free_Chick

Amba_Gambla wrote:

That makes sense, cheers....

how/when would you end up paying too much NI tho?

Because above a certain limit, the NIC rate drops to 1%. Your second job might take you above that limit, but as they cannot link in the earnings from your first job, they are likely to deduct the full rate of NI.

If you do a tax return at the end of the year, it should get sorted out

(....and what does IYSWIM mean please?!)

sorry - it means if you see what I mean

Amba_Gambla

ahhhhh!

Thanks for that....

I doubt I'll graduate out of my tax band, so unlikely that I'll move out of my NI band too...

never mind.... on emergency tax, so i'll at least be able to claim something back there!