second job tax

scotty1971

my partners friend currently works 16 hours a week,and has a take home pay off just over £100 per week,she has taking a second job,and has just had her first pay packet,and is on a higher tax code for this job and it dosen't look like it will be woth keeping it on,i know when i had a second job i paid a higher tax rate,but i worked 35 hrs and was on a lot more money in my first job,so i can see why i had to pay a higher tax rate. her second job is about an extra 12 hours a week and minimum wage,is it right this job should be taxed at the highe rate,bearing in mind she only works 16hrs in her first job?
thanks in advance

fengirl_2

Its not the number of hours she works which matters, but the amount of her weekly pay. She can earn £124 pw before tax, anything over that is taxed at 20% - she would need to be on an extra £35k a year to pay higher rate tax! If the pay in her first job is after tax, then it looks as if she is liable at 20% on all the wages from the second job - but she is not paying any more tax than if she earned the total from the two jobs at the first job.
She will pay less NIC on the second job as the forst £110 pw is below the NIC limit.

scotty1971

would it be worth her while phoning her local tax office?

her tax code for first job is 647l and second is just says BR

fengirl_2

No, no point in ringing the tax office - her code numbers are correct on the info you have given.

INT1

I earn less than £125 on a second job and get taxed BR?

PasturesNew

In Job 1 she does not use up her full tax free allowance - and has the right tax code for that.
In Job 2 she couldn't give them a P45 or P46 declaring it was her only or main job (because it's not) - so they put her on a BR tax code, which stands for "Basic Rate" and means ALL her earnings are taxed without any tax free part.

Job 2 have to tax her in full on all her earnings - which is why she might think she's taxed "more".

At the end of the tax year, when you add up the income/tax from both jobs, she will find she has overpaid the tax she would have paid if ALL that income had come from one job. This over-payment she can then claim back from the tax office.

fengirl_2

Yes, whatever you earn on a second job, provided you earn more than £125 in your main job, is taxed at basic rate. If you earn less than £125 in your main job, then you need to contact your main tax office and ask them to transfer any unused tax free allowances to your second job.

trevormax

if your friend is going to earn a fixed amount in her first job, she can calculate what her gross wages will be. If this figure is below her personal allowance, she can call her tax office and ask for her allowance to be split between the two jobs. They would set an amount against her first job so it would not be taxed. The remaining amount would be set against her second job rreducing the amount she would be taxed.

E.g.

Job 1 gross pay £5000
Job 2 gross pay £4000

Job 1 tax code 500L (or T, i can never remember the suffix's lol)
Job 2 tax code 147L

Job 1 tax = £0
Job 2 tax = £505

The amount of tax is still the same as if she had earned £9000 working in just one job.

sweetietot

trevormax wrote: »

if your friend is going to earn a fixed amount in her first job, she can calculate what her gross wages will be. If this figure is below her personal allowance, she can call her tax office and ask for her allowance to be split between the two jobs. They would set an amount against her first job so it would not be taxed. The remaining amount would be set against her second job rreducing the amount she would be taxed.

E.g.

Job 1 gross pay £5000
Job 2 gross pay £4000

Job 1 tax code 500L (or T, i can never remember the suffix's lol)
Job 2 tax code 147L

Job 1 tax = £0
Job 2 tax = £505

The amount of tax is still the same as if she had earned £9000 working in just one job.

Usually
Job 1 tax code 500L
Job 2 tax code 147T
The L suffix because each year when personal allowances increase, employers receive a notification to increase all employees with L codes by xx amount but T codes do not increase unless a new code is issued for the individual