Paying tax with 2 jobs

5hpr

Hi all,

I'm needing some help and advice on how my finances will work in this situation:

I currently work for Comet as my main and only job, part time and have done so for the last 4 years. This tax year with Comet I have made £2500 gross and my tax code is 746L.

Now that's simple enough. However from 16th of August I am starting another job (a secondary school teacher) on a salary of £21,500. I am keeping my Comet job on alongside this job by reducing my hours to 4 per week.

The teaching job will be my main source of income and my Comet job will supplement it.

I have handed in a P46 to my local authority declaring that I have another job.

I want my remaining tax free allowance to be used of my teaching job so that I am not taxed on the full amount. Is this possible or will they do this automatically?

What is the rate of tax I pay, 22%?

I am very confused about this whole tax situation, but I do not want to have a reduced teaching wage because I am paying too much tax and have to claim for a refund in April next year.

Any help is greatly appreciated.

Thanks in advance.

jem16

ShaunP wrote: »

I want my remaining tax free allowance to be used of my teaching job so that I am not taxed on the full amount. Is this possible or will they do this automatically?

No it won't happen automatically. Your teaching job will probably be assigned a BR (Basic Rate) tax code as you rightly ticked the box to say you had another job. BR is the code they must operate in those circumstances.

Once you have your 1st pay from the teaching job, phone up HMRC and ask them to swap the two codes around.

What is the rate of tax I pay, 22%?

It will be 20%.

I am very confused about this whole tax situation, but I do not want to have a reduced teaching wage because I am paying too much tax and have to claim for a refund in April next year.

Any help is greatly appreciated.

Thanks in advance.

The first month's pay will be greatly reduced but once you get the tax codes swapped round you should get a rebate automatically.

5hpr

jem16 wrote: »

No it won't happen automatically. Your teaching job will probably be assigned a BR (Basic Rate) tax code as you rightly ticked the box to say you had another job. BR is the code they must operate in those circumstances.

Once you have your 1st pay from the teaching job, phone up HMRC and ask them to swap the two codes around.



It will be 20%.



The first month's pay will be greatly reduced but once you get the tax codes swapped round you should get a rebate automatically.

Thank you so much for your help. So there is no way to get this sorted before I get my first pay? Coincidentally, this month I will get paid from Comet and my teaching job on the same day (25th).

jem16

ShaunP wrote: »

Thank you so much for your help. So there is no way to get this sorted before I get my first pay?

Possibly but depends on when HMRC get the info through to them. However it's a bit unlikely to be honest.

Coincidentally, this month I will get paid from Comet and my teaching job on the same day (25th).

Will you manage both jobs? First post in teaching may well use up a lot of your time.

5hpr

In Scotland, newly qualified teachers (NQT's) get one "probationers year" provided by the government. After the year is up you need to find your own job. This is partly the reason why I am keeping Comet on - it will mean I can get overtime when my teaching year is over.

Obviously I'm trying to remain positive and optimistic about finding a teaching job, but I am also trying to be realistic as it may take some time. Comet will provide me with some financial security in the interim.

Hopefully the weekends will see me through!

jem16

ShaunP wrote: »

In Scotland, newly qualified teachers (NQT's) get one "probationers year" provided by the government. After the year is up you need to find your own job.

I know - I've been teaching in Scotland for 35 years.

This is partly the reason why I am keeping Comet on - it will mean I can get overtime when my teaching year is over.

Fair enough. Do be careful though - I know how tough probationers find their first job trying to find their feet.

Good luck with it all.

5hpr

Thank you for your advice - it is appreciated.