40% tax on 2nd job???

GemzyKate

Hi Guys,

I'm getting married next year...so, like you do, I wanted to get a bar job to do alongside my full time job to help get some extra money into the wedding fund!

So, I've been offered an evening/weekend job in a pub, but the boss there warned me that I would pay 40% on my wages (which are only just over minimum wage as it is!).

Is this right? As I was under the impression that you could earn up to a certain amount before you pay the higher tax rate, even if its combined over two jobs.

Gem x

nikki2804

I think he is mistaken. When I've worked two jobs I've only paid 22%(if thats the current level??) tax on my earnings. HTH

tattoed_bum

I think he isnt very good at math , you will have your tax free allowance on your first job then pay tax on the rest , you will then pay tax on all earnings in your 2nd job if that makes any sense ,but you still will only pay the 22 % tax .

geordie_joe

I think you would only pay 40% tax if your total wage from both jobs is £37,401 or more. In that case you would pay 40% tax on both wages.

I think maybe he will be keeping 20% for himself.

GemzyKate

geordie_joe wrote: »

I think maybe he will be keeping 20% for himself.

Yes, that's what I was worried about it....i'll soon find out when I confront them about it. Hopefully, they're just mistaken!

geordie_joe

GemzyKate wrote: »

Yes, that's what I was worried about it....i'll soon find out when I confront them about it. Hopefully, they're just mistaken!

This may help

http://www.hmrc.gov.uk/rates/it.htm

blued

geordie_joe wrote: »

I think you would only pay 40% tax if your total wage from both jobs is £37,401 or more. In that case you would pay 40% tax on both wages.

Is that right? I thought you'd pay 22% on anything up to £37401 and then 40% on anything earned over and above £37401?

geordie_joe

blued wrote: »

Is that right?

No, it's completely wrong!

Edit: Forgot to say you are right.

westv

Remembering of course that £37401 is in addition to your personal allowance.

Any

GemzyKate wrote: »

Hi Guys,

I'm getting married next year...so, like you do, I wanted to get a bar job to do alongside my full time job to help get some extra money into the wedding fund!

So, I've been offered an evening/weekend job in a pub, but the boss there warned me that I would pay 40% on my wages (which are only just over minimum wage as it is!).

Is this right? As I was under the impression that you could earn up to a certain amount before you pay the higher tax rate, even if its combined over two jobs.

Gem x

That all depends on how much you earn already...

You get £6475 tax free (personal allowance)
Then £37 400 taxed at 20%
And only then you get taxed 40% on earnings over that (6475+37400).

This figures changes if you get any benefits at work (ie company car), because these are also taxable and would eat into your personal allowance... If that is the case for you pls tell us.

The boss cannot keep the other 20% for himself... He has to give you a payslip and also P45 at the end of employement or P60 at the end of the tax year which will show how much taxes he deducted from you and paid to HMRC - if you paid too much HMRC would refund it to you again.

Either he doesn't know what he is talking about and is only supposing what you would pay, but it is the actual accountant who does the payroll (very often in the pubs), or he clearly thinks that you earn loads already and that would make him to say that.