What are the tax implications of having an occasional second job?

KatieAnna

Sorry if this has been addressed before- I am completely thick when it comes to anything involving maths, numbers, or tax. :mad:

I currently have a full-time job, earning just over £22,000. I have a new casual arrangement to work as an exam invigilator for £7.00 per hour on the occasional Saturday. (Twice a month at the most, minimum 5 and maximum 8 hours per shift.)

I assumed that this would have a minimal effect on my tax/NI, but a couple of people have made me paranoid. I don't want to bother getting up early on my day off to work more if it's not going to earn me much extra money, and I wondered if anyone could confirm how much more tax, if any, that I would be likely to be charged?

PlutoinCapricorn

As you will have used up your personal allowance in the main job, anything extra will be taxed at 20%. Will you be retained as an employee and taxed under PAYE for the occasional work?

You will probably not be earning enough to be liable for NI, as the jobs are separate.

anamenottaken

Just to add - you wouldn't be paying any more tax than if you earned that extra amount in your main job. You would actually gain by not paying NI on the extra earnings when you would be paying NI if it were in your regular employment.

jobbingmusician

There's a lot of useful information about tax requirements for 2nd jobs in the first post of MYSTERY SHOPPING THREAD 19 - please don't mention client names or fees on here!!

Quenastoise

You're fine. As Pluto said, you'll be taxed with the BR code with all invigilating income taxed at 20 %. You would only be adversely affected if the second income was enough to push you into the higher tax bracket and made you liable to tax at 40 % as a result.

ceridwen

Don't forget to take account of the Governments plans to combine "income tax" and "National Insurance" as one tax. With that - you would have to pay what is currently called "National Insurance" on second jobs too by the look of it.

Must say that I wouldnt do an antisocial hours job personally for only £7 per hour - particularly when exam invigilating used to be a reasonably paid job. I have a vague idea that it used to be about £15-£20 per hour (and that was a few years ago....).