part time jobs

katkins2

Hi,

I'm sorry if this is a silly question but I know zilch about tax (other than I pay it). I work part time and am considering taking on another part time job aswell. Would I pay more tax on a second part time job than I would if I worked full time in my current job?

Thanks in advance

Lokolo

Your tax code will fully be on the first partime job (should be something like 647L).

Now when getting jobs, it always assumes you are a taxpayer, so it means on your second job you get no tax allowance (as its all on the first job), and will pay tax on everything.

However, if you know how much you might earn you can split your tax codes according, so have £3000 on one, £3475 on the other.

Or you can pay tax on the second job, when you get your P60s in April/May, send them off, and assuming you haven't earnt over £6475 you get a tax refund.

katkins2

Thanks for that. My tax code is 647L. I earn more than the £6475 in my first job. Am I right in thinking then that the amount of tax I pay will be the same whether it is for 39 hours in one job or split over 2? Sorry, I find it all very confusing.

Thanks again

trevormax

At the end of the year it will be the same amount (once you have made a claim for a rebate if needed). You could have 10 jobs working 4 hours a week each and you would still pay the same tax as if you had 1 job working 40 hours a week.

The problems occur when trying to pay the correct amount of tax on each job through the year. Usually if you don't earn enough to use up all of your personal allowance on your first job, you will end up paying too much tax on the second unless you sort out your tax code and split it between the two jobs.

In your case, as you are earning more than £6475 in your first job, you should just leave ALL of your personal allowance on that job and pay the basic rate of 20% on the second job. You will end up paying the correct amount of tax by doing this.

When you fill in the P46 when you start the second job, I think there is an option to tick to say to just use BR as the tax code.

CLAPTON

katkins2 wrote: »

Thanks for that. My tax code is 647L. I earn more than the £6475 in my first job. Am I right in thinking then that the amount of tax I pay will be the same whether it is for 39 hours in one job or split over 2? Sorry, I find it all very confusing.

Thanks again

Yes you have liability for the same amount of tax irrespective of the number of separate jobs you have.
In your case as long as you keep your 647L code for you first job and then pay BR (20% ) on your second then you pay the correct tax.

On the bright side however, you may be pleased to know that you will pay less NI contribututions with two jobs than with only one job(with the same total income).