Tax on 2nd job

Nikkisun

I currently work p/t (25 hours a week - earn around £12500) and next week am due to start a 2nd job (15-20 hours a week) as I get my tax allowance on my first job am I right in thinking that my tax code for the 2nd job should be BR and I'll pay tax and NI on the whole amount?

fengirl_2

Yes, you will have tax deducted at basic rate from the whole of the pay on your second job. However, the first £412 of your monthly pay will be exempt from NIC, with the rest being charged at 11%.

Nikkisun

Thank you.

So am I right in thinking that if I earn £408.20 per month in the second job I'll pay £89.80 tax but no NI giving me take home pay of £318.40?

(sorry to be a pain)!!

CLAPTON

No, you pay tax at 20% on 408.20 which is 81.64 and yes you pay zero NI

PlutoinCapricorn

I think that you are very sensible to try to estimate in advance what your tax and NI should be: getting ahead of the game like this means that you can pick up mistakes as they happen, and get on the case while it is still hot. Learning about the rates, bands and percentages can be a pain, but you can't always trust employers and HMRC to get it right.

Nikkisun

Thanks - I like to have some idea of what I can expect at the end of the month - makes planning how to spend it much easier!!