Tax query - second job

alexisemma31

Due to my hubby's redundancy and failure so far in securing a job, I'm thinking of trying to find a second job to try and earn a little more and ease the pressure on us.

My query is that I already work full time and my gross salary is £38,000. Does that take my into the higher tax bracket?

I'm unsure whether the higher tax bracket includes/excludes your personal tax allownace?

Can someone please advise?

billsavings

The Tax Forum is here. http://forums.moneysavingexpert.com/forumdisplay.php?f=22

Take away your personal allowance and allowable deductions from your salary/income and the balance is charged at the appropriate rate.

£0-£35,000. 20%

£35,001-£150,000. 40%

http://www.hmrc.gov.uk/rates/it.htm

alexisemma31

billsavings wrote: »

The Tax Forum is here. http://forums.moneysavingexpert.com/forumdisplay.php?f=22

Take away your personal allowance and allowable deductions from your salary/income and the balance is charged at the appropriate rate.

£0-£35,000. 20%

£35,001-£150,000. 40%

http://www.hmrc.gov.uk/rates/it.htm

I'm really sorry for sounding thick, but does that mean based on my gross salary - any ££ over the £35,001 is 40% tax?

I earn £38,000 a year and I'm trying to work out if its worth me getting a second job.

billsavings

alexisemma31 wrote: »

I'm really sorry for sounding thick, but does that mean based on my gross salary - any ££ over the £35,001 is 40% tax?

No you need to deduct any allowances as i mentioned.

EG.

Tax Year 2011/2012

Earnings £38000 less personal allowance 7475 = 30525 means you can earn another 4075 before reaching 40% tax bracket.

GavB79

What do you do for £38k a year where you don't understand if you pay higher rate or not? Sorry maybe that is harsh but... no, you are not paying higher rate tax at the moment. Depends on how much you would earn from the second job as to whether you would reach the threshhold. You can earn around another £4.5k at basic rate first.

alexisemma31

GavB79 wrote: »

What do you do for £38k a year where you don't understand if you pay higher rate or not? Sorry maybe that is harsh but... no, you are not paying higher rate tax at the moment. Depends on how much you would earn from the second job as to whether you would reach the threshhold. You can earn around another £5.5k at basic rate first.

I don't think your comment is harsh, just a bit judgemental tbh.

It's never really bothered me before, I just pay my tax each month, never really had to think of it. Its only now as I've had to start thinking about getting a second job, I wondered whether it would be worth it.

Thanks for your useful answer, I know now it might be worth me getting a second job.

billsavings

alexisemma31 wrote: »

I don't think your comment is harsh, just a bit judgemental tbh.

It's never really bothered me before, I just pay my tax each month, never really had to think of it. Its only now as I've had to start thinking about getting a second job, I wondered whether it would be worth it.

Thanks for your useful answer, I know now it might be worth me getting a second job.

So dont i get any thanks for my answer then,which is more accurate.;)

alexisemma31

billsavings wrote: »

No you need to deduct any allowances as i mentioned.

EG.

Tax Year 2011/2012

Earnings £38000 less personal allowance 7475 = 30525 means you can earn another 4075 before reaching 40% tax bracket.

Oops, sorry, I hadn't seen your reply.

many thanks for your FANTASTIC reply, it has answered my question perfectly:D:j:beer: