Tax on 2 jobs implecations

Mudkip-boy

Hi all,

I am planning on taking up a second job working in a pub on weekday evenings and some saturdays at the wage of £5,93ph. I roughly estimate that I will be working between 20-25hrs a week. However I already work 40hrs pw at my main job earning 20K a year. I have been told by a friend that this will increase the amount of tax I will have to pay as I will no longer be entitled to my tax-free allowance. Is this true? And if so, how should I calculate how much tax i will be paying on the 2 jobs. Really appreciate any replies so that I can make a informed decision.

Thanks in advance guys :-)

Sewsosew

I'm not an expert but what I think happens is that your normal tax code will be applied to your first job and then you will have a Basic Rate tax code for your second job. I think the basic rate of tax on that is 25%.

So yes, you will pay more tax but on your earnings from your second job.

Hammyman

Your tax free allowance is already used on your main job. Basically all that will happen is that all of your income from the second job is taxable at 20% whereas on your main job, you only pay tax on earnings above £143 a week.

You will pay no more tax than if you had one job with an income the same as your current job plus the part time one.

When you get the second job, you will need to fill in a P46. There is a box to say that this is not your main job. Thats the one you need to tick.

lovinituk

Have a read of this thread of a similar discussion - https://forums.moneysavingexpert.com/discussion/3324630

JulieElizabeth

Your tax code will be split between the two jobs

pineapple

Mudkip-boy wrote: »

Hi all,

I have been told by a friend that this will increase the amount of tax I will have to pay as I will no longer be entitled to my tax-free allowance. Is this true?

It's immaterial whether you earn extra money through the same job or an extra job. Think of it as one income. Your tax allowance will be set against the main job and you will continue to pay tax on the rest - ie on the remainder of your main job and on all of the second job.

You don't lose your tax allowance - neither do you get an extra one for the second job.
There are online tax calculators to work it out.

Mudkip-boy

Thanks for all of the replies everyone, very helpful :-)

chrisbur

Also bear in mind that assuming your second job has no connection with your first job then you get a second allowance befors NI is due. This means that NI will only be taken on earnings in excess of £139 a week.

Hammyman

JulieElizabeth wrote: »

Your tax code will be split between the two jobs

Mine never has been. I've just paid tax on the lot on the second job. You can nominate to do it but there really isn't much point.

[Deleted User]

JulieElizabeth wrote: »

Your tax code will be split between the two jobs

NO it wont,he will get the full tax free allowance on main job and pay tax at 20% on all earnings from this 2nd job....simples

chris1973

If you worked 20 hours at £5.93 PH you would earn:- £118.60

Less 20% Tax Deducted:- £23.72 in tax

So you would take home around £94.88

Your earnings from your main Job will stay the same.