Second Job: is it worth it?

Alcmene

I'm looking at the possibility of getting a second job, possibly bar work or something along that vein.

Can anyone who is tax savvy advise on how this would affect me please? Would I just pay 40% tax on my second job? Would I also need to pay NI twice?

MORPH3US

I could be very wrong, but unless your second job takes you over the threshold (total earned for both jobs), you will just pay 20% (or is it 22%)...

LittleVoice

If you earn enough in your first job to use up your tax-free allowance, you will pay standard rate tax on your income from the second job. As MORPH3US says, you won't have to pay 40% unless your combined income takes you up to that level.

NI will be applicable too but you will be able to earn up to the lower earnings limit in any week/month before you have to pay that.

Jowo_2

Alcmene wrote: »

I'm looking at the possibility of getting a second job, possibly bar work or something along that vein.

Can anyone who is tax savvy advise on how this would affect me please? Would I just pay 40% tax on my second job? Would I also need to pay NI twice?

It's about taxable salary overall rather than tax rates per job, I think. This link will help you calculate your taxable income where the 40% would kick in after 37k.

http://www.direct.gov.uk/en/Nl1/Newsroom/Pre-BudgetReport2008/DG_172915

Not sure about how NI works. Would assume that its a percentage of gross salary so will be proportional but that's a guess.

You should be able to find some tax calculators on the internet.

fengirl_2

Others are correct, you will pay 20% tax unless your taxable income exceeds £37,400. The first £110 of your weekly wage is exempt from NIC, the rest is charged at 11%

Alcmene

Thanks for everything, I have always found numbers really difficult to get my head round, I am very scientific but have a mental block against numbers!

I do exceed £37,400 so I guess I will pay 40%, even if I earn £40 a week on a second income. That's life, I'll pay my taxes like everyone else.

bristol_pilot

Paying 40% tax on bar work is not worth it, that's why I haven't bothered getting a second job.

JoolzS

Many years ago I had a bar job that I absolutely loved. I did need some of the second income but I got a lot more out of it than that. I was lucky enough to get a job in a pub that had a lot of regulars, both young and old, so my job became my social life. If it had been just about the money then I probably wouldn't have been able to cope with it - but because it was, in fact, a stressless job I really, really enjoyed it (most of the time - my manager was lovely, but his wife was a b****).

I only quit because my then boyfriend (now husband) worked nights and I worked days plus the bar job, which meant we almost never saw each other.

I've had many jobs - some I've loved and some I've hated, but one of the most enjoyable was working part-time in a bar for a few evenings a week.

If you do consider bar work, then you have to be aware that it can be completely draining. A really busy night is actually uplifting, but then it can take an hour or two to come down after your shift which means you don't get to sleep until about 1 a.m., which can be a problem if you have to get up at 6 a.m. for your day job! I once worked, quite happily, my day job plus my bar job for about ten consecutive days (weekends off in my day job, none in my bar job) - I was completely happy until someone asked me to add just one more extra shift to my bar job and I just burst into tears. I had no idea that I was so overwhelmed and tired until that moment.

Apologies for far too much information - I just like people to know the pros and cons of things I have experience with.

Good luck with whatever you choose to do.

Julie

LittleVoice

bristol_pilot wrote: »

Paying 40% tax on bar work is not worth it, that's why I haven't bothered getting a second job.

Probably paying 40% tax on your other income which attracts that rate isn't worth it too.

MORPH3US

If this is too personal OP then please ignore.... but why would you want to earn minimum wage in a second job when you already earn over £37k a year?!?!?

£37k seems such a lot of money and you must work long and hard to earn over that so there must be a very good reason to take on more work, I just can't think what....

bristol_pilot

LittleVoice wrote: »

Probably paying 40% tax on your other income which attracts that rate isn't worth it too.

'Cos taking home 60% of £48 for an hour's work is worth it but taking home 60% of £7 for an hours work isn't - doh !