Tax implications of taking on a second job?

GreedIsGood

Hello.

Apologies if this question has already been answered elsewhere on the forums but I am new to this game....

I am currently in full time employment and I am considering taking on a second job. I currently earn £30k as my 'basic' salary then I also get a £2700 tax free allowance on top which is essentially my pension.

I feel that you only get anywhere in this world via hard work, luck, or both. I would like to work some extra hours but unfortunately, at present there is no overtime on at work. Thus with Christmas approaching (agghhh) there will be plenty of casual work on at local supermarkets etc.

Could someone please advise if there any negative impacts of me taking on say, 8 hours extra a week at a second job. I know currenty I am not at the 40% threshold although following an annual pay rise I will get a little nearer.

It has been suggested to me that the government does not look favourably to those taking on a second job where the first is full time, and subsequently the 'tax man hounds you'?

I could only forsee that once the threshold for higher tax is passed, then the part time work would not be so worthwhile. I am not 100% sure how the income tax system works, but I am assuming that you simply pay more automatically once you have earned more than the threshold in any given year.

Any help would be greatly appreciated.

Many thanks.

System

Your second job will be taxed at Basic rate = 22% though obviously if your total income at the end of the year takes you into the 40% bracket you might have a tax bill.

Currently the allowances for 06/07 are

Tax free £5035.00
10% band + £2150.00 = Total £7185.00
22% band +£33300.00 = Total £40485.00
40% payable on everything above a total income of £40485.00

The tax office which deals with your main employer should tell the tax office which is dealing with your second (Sub) employer to operate a BR tax code.

It would be advisable to tell your main tax office about the second job to ensure that your main tax record is not pulled from that office to the new office although your new employer should give you a P46 to complete which gives you the option to indicate that that job will not be your main employment.

isasmurf

Pam17 wrote:

Currently the allowances for 06/07 are

Tax free £5035.00
10% band + £2150.00 = Total £7185.00
22% band +£33300.00 = Total £40485.00
40% payable on everything above a total income of £40485.00

A minor correction 40% is payable on earnings above £38,335 - assuming you are on the basic personal allowance. (BR is payable between £2,151 and £33,300 of taxable earnings).

The taxman doesn't hit you for taking two jobs. The same tax would be payable if you earned, say, £35k in one job or in two jobs. However, you would pay less NI with 2 jobs than if you earned the same amount in 1 job.

GreedIsGood

Great, many thanks for this, that clears things up. I doubt I would go over the 40% threshold so I guess I just need to make sure my records don't get moved between offices.

Time to start job hunting

Thanks again.

Pauper_Princess

GreedIsGood,

Just wondering if you had any luck with your second job search yet? Realise it's early days yet! But I'm in a similar situation, I don't earn as much (£24000) but I need a second job - too many debts and now the threat of redundancy

But a lot of people have told me I don't stand a chance of getting supermarket work etc. as they only want people like mums who have no other job? I know that it'd be more expensive to employ me in terms of employers national insurance, but will that be enough to put them off me?

Will you let me know how you get on? I'd be very grateful