How is tax calculated if do 2 jobs?

bigsaver2010

Hi,
I am having difficulty undertanding the tax calculations for doing 2 jobs.

I currently have a full time job within the NHS but want to apply for a part time post elsewhere within the NHS. I would want to drop my hours in my current job so I work a total of full time hours over the 2 jobs.

I want to know whether I would lose out with paying extra tax by doing this?

I am a nurse and both jobs would be fairly equivalent salaries - one job would be 15 hours, the other 22.5 hours.

Can anyone advise how this might work?

CLAPTON

the total tax you pay depends upon your total income
it doesn't matter if the income is from just one job, two, three or more

in practice one job would have your tax allowance allocated to it (i.e. taxcode 647L) (usually the job with the highest income) and the other will be taxed at 20% i.e. you will have a BR code; but the total tax will be the same as if you have only one job with the same total pay.

CLAPTON

and just to add; depending upon your total income then with two jobs you will pay a little less NI that with just one

bigsaver2010

Great, thanks for that. So apart from the slight hassle factor of 2 jobs it might be OK. Assume pension contributions etc wouldn't be affected either as both NHS employers and I already pay in.....

dancingfairy

I believe you can also get the tax office to split your tax allowance - so you get a proportion of it for each job - ie for 2 jobs at the same annual rate you would get 50% of the tax allowance on each.
I would check the tax codes carefully when you get them to check how your allowance has been split between the 2 jobs and they haven't done something like give you the full allowance in both jobs or no allowance at all. I am sure someone can help if you get stuck.
df

jem16

dancingfairy wrote: »

I believe you can also get the tax office to split your tax allowance - so you get a proportion of it for each job - ie for 2 jobs at the same annual rate you would get 50% of the tax allowance on each.

You can do this. However unless the main job job earns less than £539.58pm it's not worth bothering about. In that case 647L on main job and BR on the other will suffice.

dzug1

Given that both jobs are in the NHS it's possible that for payroll purposes they will be treated as one and that you won't need to bother with two tax codes..

bigsaver2010

HI everyone. So I have been successful with the second job! So I will be working in the new job on 22.5 hours and my old job on 15 hours. The pay is slightly higher in the new job, so is it more benefiial to transfer my P45 to the new employer? Not quite sure who I would speak to to ensure the tax codes are sorted out properly??

CLAPTON

you want your tax allowance against a job in which your earn at least 6475 (this year ) or 7475 after april

chrisbur

dzug1 wrote: »

Given that both jobs are in the NHS it's possible that for payroll purposes they will be treated as one and that you won't need to bother with two tax codes..

If this is the case it is possible that for NI purposes the two jobs may be treated as one as well and if so there would not be any NI reduction from having two jobs.

bigsaver2010

CLAPTON wrote: »

you want your tax allowance against a job in which your earn at least 6475 (this year ) or 7475 after april

I will be earning more than that in both jobs individually, so does it make any difference?