Having two jobs - how will the tax work?

maid_in_cornwall

Hoping someone can help me answer this question.
I have recently started a new job which I will have more hours with than my first job. But I have told my second employers that my other job is my main one as my first employer doesn't know I have the job (they would get a bit sniffy about it!)

I don't want my 1st employer to know about the 2nd job, but how do I get round the tax? Will they tax me more on the 2nd job? I have done it this way because I think if they tax me on my first job my 1st employer will know I am working somewhere else, as at the minute I do not pay tax with them.

Apologies if this sounds complicated, I'm confused myself!!!:o

kazwookie

You get your tax code for job 1

BR tax code for job 2

maid_in_cornwall

So is that basic rate for job 2 - is that 20%? Sorry to sound so thick, don't know much about tax!
And if I don't use up my tax code for job one, will it be carried over to job 2 at the end of the year? Will this mean I could possibly get a rebate?

anamenottaken

maid_in_cornwall wrote: »

So is that basic rate for job 2 - is that 20%? Sorry to sound so thick, don't know much about tax!
And if I don't use up my tax code for job one, will it be carried over to job 2 at the end of the year? Will this mean I could possibly get a rebate?

If you think that Job 1 will not use up all your personal allowance, then you can get HMRC to split your allowance between your two jobs.

If you think it is borderline and maybe you will change one or the other jobs, then leaving all the allowance with Job 1 would mean an over-payment with Job 2 and this can be redunded to you.

And, yes, basic rate tax is 20%.

Nosht

Employer 1 will never know about Job 2 unless you tell them.
I had 2 jobs for 10 years & with tax & travel deducted made 2/3 profit. (Job 1 £7,500 p.a. average, less £2,500).
Quite a fair legal earner.

N.

telboyo

Get the Highest paying job to use your tax code - and get your second job to use code BR. When you start the second job your new employer will ask for a P45 which you will not have because you still got job 1. Your new employer will give you a P46 to fill out, in the personal circumsatnces section tick box c, this will mean you will have a tax code of BR for the first job.

At the end of the tax year you will receive a P60 for every job that you do, using them you can easily calculate in your head if you are due a tax rebate.

Find the total taxable pay for each job and add these together. e.g £8456 and £3456 = 11912
Find your tax code e.g 647L swap the L for a 5 so you get 6475
Subtract this figure from the total on the first line £11912- £6475 =£5437
divide 5437 by 5 to give the total amount of tax = £1085

Look at the p60s and add the TAX paid columns together 396 + 691 =1087

In my figures there is a £2 difference because I only guesstimated these figures in my head but from those figures you can easily see that the tax is more or less correct and there would be no need to challenge them.

If you do the above example with both tax codes at 6475 you would have only paid £396 and would owe the tax man £691.

If you have both set at BR you would have paid 2382 and therefore would be due a rebate of nearly £1200.

It is only slightly more complcated if you earn over 44000 pa.