Second Job

maddie1603

Hello moneysavers, I've looked all over the net for an answer to my question but I'm still completely confused!

Until 6 weeks ago I was unemployed, now I have two jobs. The first job is a 37 hour a week job with a £11000 salary, the second is 12 hours a week paid per hour working out about £4000 a year. I received from the tax man this morning saying my tax code is now 433T, as they're subtracting the amount of tax I would pay from my part time job from the personal allowance of £6475.

However, Martin's Income Tax Checker tells me that this 433T tax code means I pay more than £400 more tax per year than if I put in no code at all.

Am I paying more than I should be? I'd be so grateful if someone could simplify it for me!

trevormax

What would normally happen is all of your personal allowance would be used in your main job and a BR tax code would be applied to your part time job. As you are starting work part way through the tax year and you are not expected to earn more than the personal allowance in your full time job before 5th April 2010, it looks like HMRC have split your tax code over both jobs. This means you will pay no tax in both jobs and so should not have to claim a rebate at the end of the tax year.

Your main job is around £11k per year. There is 5 months left in the tax year so you will only earn about 5/12's of the £11k. HMRC have given you a tax code of 433T which should cover all of your earnings from youur main job.

The remaining amount will be aplied to your second job in which you will expect to earn around £1.6k

If HMRC had just done the standard thing and applied all of your tax code to your full time job, you would definately overpay tax by the end of the tax year. The calculator is incorrect because you will have entered the wrong figures. I am guessing you included all your income when using the 433T code but if you include all of your income, you must use the code 647L.

chrisbur

maddie1603 wrote: »

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However, Martin's Income Tax Checker tells me that this 433T tax code means I pay more than £400 more tax per year than if I put in no code at all.

If you do not enter a code then the tax checker assumes a code of 647L or thereabouts.