Wil my 2nd job get taxed to death?

Jessy-J

Basically i have just secured a very tidy job working full time for a large company on a salary of £34 000 a year, i also have an electrical contracting company running (previous employment) i only work 170 days a year in my new job so i am planning on carrying on with the electrical work on the side , the nature of my electrical work means it is all legit and through the books ( CIS )

will i have to pay silly tax on both of my occupations or just my second?

somethingcorporate

You have a personal allowance that will be applied to one of your jobs. The other will likely be Basic Rate where you do not get a tax allowance so you pay tax on the full lot.

What is your expected income across both jobs? plug the totals into http://listentotaxman.com/ and see what it says.

Even if you get taxed at the higher rate (40%) it's still worth doing.

Jessy-J

hmmm i would say i could easily do 10 grand of electrical work but i dont want to work myself into a grave so lets say 5 max , cool i'll give that a blast. cheers

sweetpeas_2

Jessy, you will pay 22% on your full time job (this is what we all pay) after your tax free allowance (not sure what that is now)

As somethingcorporate said, you're second income you won't receive the tax free allowance so you will pay BR tax on it all, which is 25%. If it takes you over the higher tax threshold with both incomes combined the 25% might increase but don't quote me ;-)

Me and DH have had second jobs on and off for years every time we've needed a bit extra and even though we get stung with the tax a bit it's still worth it for us.

HTH x

jhp

sweetpeas wrote: »

Jessy, you will pay 22% on your full time job (this is what we all pay) after your tax free allowance (not sure what that is now)

As somethingcorporate said, you're second income you won't receive the tax free allowance so you will pay BR tax on it all, which is 25%. If it takes you over the higher tax threshold with both incomes combined the 25% might increase but don't quote me ;-)

Me and DH have had second jobs on and off for years every time we've needed a bit extra and even though we get stung with the tax a bit it's still worth it for us.

HTH x

If your going to dabble in tax advice i suggest you check the latest tax rates and the way Husband and Wifes income is treated for tax purposes.;)

Sixer

OP: You're saying you have one employed job at £34k and now you'll be doing some self-employed work under the Construction Industry Scheme?

I'm not sure how CIS works if it takes you into the higher tax bracket - they deduct basic rate tax at source, don't they?

However you end up paying it, you'll need to add the two totals together - £34k + CIS payments BEFORE they take off any tax.

At this year's rates, you'll pay:

0% tax on £0 - £7,475
20% tax on £7,475 - £42,475
40% tax on £42,475 and over

National Insurance might be complicated by the CIS thing - but it's only 2% on earnings over £817 a week.