help with my tax on second job

20-laser

ok so for reasons left out i have taken on a second job and im sure im gona fall heavy on it for tax
i currently earn 39k and over in my first job and already pay high tax as i fall into the high earner bracket
what will be my tax on the second job??
i know there are some people who may find it greedy but due to job security i have taken on the second job as a different venture and to coin the phrase " another bow in my cap"
any help on this subject would be appreciated
cheers

trevormax

Well assuming you have a standard tax code of 647L, you are allowed to earn up to £43,875 before you hit the higher rate tax band. If you earn this amount or more in your first job, you should be paying 40% on all earnings from your second job (again assuming you have a standard tax code).

If this is the case, one thing to be aware of is your second job might mistakenly just put you onto a BR code which is wrong. The result of this is you will only be paying 20% on your second job and will be underpaid. HMRC will want the remaining 20% at some point. If you earn more than £43,875 in your first job, your second job should have a tax code D0 which will tell the employer to tax all of the earnings at 40%.


It gets a little more complicated if you earn less than £43,875 in your main job as you still have some BR band to use. To get around this, I believe (although I may be wrong) they increase your personal allowance a little on your main job to compensate for any overpayment of tax on your second job.

All of this is assuming you have a standard tax code, dont have any benefits in kind from your employers (such as company cars), dont make payments to charities under the gift aid scheeme and dont make pension contributions. Also if you have other sources of income such as bank interest or dividends, they might be affected by an increased salery.

suso

as you say you currently pay higher rate tax on your main employment then any further earnings at a second job will be at the higher rate of 40% on all of your earnings at this employment

Presumably as you say that your earnings are approx 39000, then I guess you receive other benefits, such as commission / car / fuel / medical and this has reduced your tax free allowance. otherwise as trevormax quite rightly says you would need to be earning over 43875 in order to be eligible for higher rate tax.

Also as trevormax says , any savings income or dividends will also need to be taxed at the higher rate (40% for bank/building society interest + 32.5 % for dividends payments) if you start to pay to pay higher rate tax through employment.