second job tax question

zip1980

hi i was looking at getting a second job i work between 21 and 28 hours a week at my current job but was hoping to get another job which is 16 hrs a week, however my current employer has told me that if i get a second job i will pay a higher rate of tax on that wage and that it wouldnt be worth it, is she correct. thanks

lumar

You would get taxed at basic rate on your second job so in effect you would pay income tax on all your 2nd job earnings, but not at a higher rate unless your earnings took you into the higher tax earnings.

zip1980

so 20% on every pound i would earn? so if i just had one job but was full time i would be paying the same amount of tax anyway?
how much national insurance do people pay as a percentage out of their wages? sorry just want to work out what i would come out with. thanks

lumar

Yes, the amount of income tax would be the same. I remember when I had two jobs at the same time, NI wasn't deducted until I had earned around £90 a week in each job (I don't know the current amount but it will be a bit more now).

Unstoppable_2

zip1980 wrote: »

hi i was looking at getting a second job i work between 21 and 28 hours a week at my current job but was hoping to get another job which is 16 hrs a week, however my current employer has told me that if i get a second job i will pay a higher rate of tax on that wage and that it wouldnt be worth it, is she correct. thanks

No, she's talking bunkum. When you start a second job, you complete a P46 stating that it is not your main job. You are then taxed on the full amount of what you earn at the standard rate.

Basically, as long as you earn over your tax free allowance in your main job, you would pay no more tax over the two jobs than you would if it were a single job. The only time it gets a little unstuck is when you don't earn as much as your tax free allowance in which case, you'd pay too much however you can either reclaim this at the end of the year and treat it as a savings scheme.