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2nd job confused tax!

hello all i am new to the website but i am in desperate need of advice.
i have started a new job full time for 22.500 a year but i still work one day a month in a salon- in the salon i work on a commission only for a cheque but he wants me to invoice him. does this mean he is not paying my tax? does this mean my tax code on my full time job will go up? or will it only affect the cash i earn that day? also would it be easier to fill out a p46 or do self assessment? im very confused.
i think the most important question is- will this affect my fulltime job tax code? and does anyone know the brackets on the codes?
many thanks

Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    when you started your new job... did you have a P45
    or did you fill in a P46.. if so did you say you had another job?
  • System
    System Posts: 178,419 Community Admin
    10,000 Posts Photogenic Name Dropper
    If the salon owner wants you to invoice him then that indicates to me that you are self-employed (SE) in that job.

    If that is the case then you have to pay your own tax and national insurance on that income. You should also be registered as SE with HMRC. Your new job should then be classed as your main PAYE income and a tax code will be operated on that.

    If the salon owner does deduct tax and NI from your wage then you have 2 PAYE sources of income and you have to let HMRC know which one you want your personal allowances set against as the other will have a tax code of BR which means 20% will be deducted at source. In your case it would probably be best to have your allowances set against your new job as it is most likely the ones where you earn the most money.

    The allowances can be found here - http://www.hmrc.gov.uk/rates/it.htm
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
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