Tax on second job?

MatthewLondon

I'm thinking of getting a 2nd job, over the weekends and was wondering what the tax rate would be?

I'm currently taxed at 20% and any new job wouldn't take me over the earnings threshold to be taxed at 40% . . . I've seen 22% mentioned in other posts, but they all seem to date from before the 10% rate was abolished, so perhaps the 2nd job rate has changed as well?

Cheers

lazer

For the second job you'sd be taxed at BR (Basic Rate)

This for you is the 20%.

The difference between your first and second job tax rates is that you do not get your personal allowance (tax free amount) of £6.7k on the second job

Hammyman

You will be taxed at 20% on the full amount. There is no "second job rate" nor has there ever been. There is merely the rate that is applicable to your total income. With your tax free allowance being assigned to the main job, the entire income from the second job becomes taxable if you're exceeding the tax free allowance in the first.

MatthewLondon

Okay cool, thanks . . . I assume I'll also pay NI @ 12% for both sets of income?

PlutoinCapricorn

The 10% and 22% rates are history, as you suspected.

It can be confusing: the income tax is calculated on the combined jobs, but the NI is calculated separately for each job. The rates keep changing: the ones for FY 2011/12 will be on the HMRC website.

getmore4less

Tax 20% you just add up all the income.

NI is per job so depends how much you earn in each