Second Jobs

Alison_Funnell

Are they worth it tax wise? I have heard you are heavily taxed, but am I correct in assuming this is just because personal tax allowance is used up in many first jobs? And does anyone know of the break even amounts etc or where to find them?

Many thanks.

PlutoinCapricorn

You are quite right: it just seems that you pay more tax because you have used up the entire personal allowance on the main job. Unless there are special circumstances, the Tax Code for the main job will be 647L and the 2nd job will be BR. You can earn up to £6,475 before you start paying tax, hence the 647, after which you start paying tax at the Basic Rate of 20%.

If the 2nd job takes you over £37,000 or so in total, you pay 40% on the extra amount. http://www.hmrc.gov.uk/rates/it.htm

National Insurance is treated separately for each job.

Nosht

Alison_Funnell wrote: »

Are they worth it tax wise? I have heard you are heavily taxed, but am I correct in assuming this is just because personal tax allowance is used up in many first jobs? And does anyone know of the break even amounts etc or where to find them?

Many thanks.

Not too bad, very useful at the time.
I had one for 8 years, working 20 hours a week.
Rough calculations were £7000 earned, less tax & travel gave me £5000 in bank.


Regards,


N.

BILLIE

Hi Pluto - I have a 2nd job contracted for Sundays and do extra hours in the evenings when I can, sometimes only a couple, but feel it all helps. Thought I would get hammered for tax, but when my wage slip came it has BR (assume Basic Rate) and therefore wasn't too bad. So am assuming that this is right and they will not take loads of tazx unless I go over £37K. Have I assumed correctly? Thanks for the advice by the way Billie xx

fengirl_2

Yes, you are correct. The basic rate of tax is 20% if you have taxable income under £37,400pa.
Although you only get one tax free allowance a year, you actually get the NI exemption of £100pw on each job, so you are saving money there by having two jobs. (Doesn't work with overtime though.)

BILLIE

Oh thank you fengirl - I was beginning to panic because the Christmas and January pay was worth doing it and I was surprised at the end of the pay packet. I was thinking just my luck for them to take loads back. Thank you thank you thank you Billie xx

tiff

I always wondered about NI. I dont pay it in either of my 2 part time jobs. I assume thats because I dont earn £100 a week in either job? But that affects my benefits/pension though doesnt it?

Jeff77

Second jobs are worth it tax wise depending on the second job that you're gonna take. If ever you're gonna take a second job, I'll suggest that you take one that does not require tax payments. Like online jobs for example.

PlutoinCapricorn

Jeff77, you should be paying tax on all earnings. If you are getting irregular income from work and it is not taxed at source, then you need to register as self employed and file self assessment returns.

niaud

If you take on a second job, will your first (main) employer know through Tax etc?

Thinking of taking on a second job but I want to keep it quiet!!

jadex

Second job is not that much worth if you are receiving some sort of benefits (like tax credit).
You earn more, it will be offset against your benefits and net result is more or less zero.
I'm not telling it is better to be on benefits, I am just saying your effort will not be always prized and you end up with the same amount of cash coming in.