Tax on Overtime with Part time work

PTHarry

Hi there.

I am 20 years old and recently managed to get off JSA and netted myself a part time job paying £7.50 an hr and 12.5 hours a week, tax free.
I get my wages at the end of each month.

However, this month, I've been covering some people and done an extra 93.5 hours. So, my query is thus. Just how much of this am I going to see? I had a look around calculators and the likes but found it pretty overwhelming.

Any assistance would be great.

Thanks.

agrinnall

This is what I reckon, although I'm happy to be corrected by people who know more about PAYE than I do.

Your normal monthly pay is around £406, which you won't pay any tax or NI on.

If you're getting paid for an extra 93.5 hours at your standard rate that means an additional £701 for the month, giving you a monthly total of £1107.

Multiplying that by 12 gives you an annual figure of £13290. If you plug that into http://www.thesalarycalculator.co.uk/salary.php it says you'll pay £96.92 tax and £60.65 NI per month, giving you take home pay of £949.93. This assumes your tax code is 747L.

If in future months you don't work as much overtime you may find the tax being refunded, but the NI stays paid I'm afraid.

jem16

PTHarry wrote: »

Just how much of this am I going to see? I had a look around calculators and the likes but found it pretty overwhelming.

Can't give you an exact answer without knowing how much you have earned either in your job or from JSA from 5th April. We would also need to know your current tax code.

Reason for this is that tax is done cumulatively. On a normal tax code of 747L this gives you £7475 worth of tax free allowance. This is divided by 12 to give you part of those tax free allowances each month. For September you would be allowed a cumulative total of £3737.50.

If you had been earning £406pm from April till August you would be paying no tax but also wouldn't be using up all of your tax free allowances. So when this extra £701 comes along this month that would only give a cumulative total of £2731 so the extra overtime still wouldn't see any tax coming off as it's less than the £3737.50 that is allowed at September.

NI would still have to be paid though.

agrinnall

See, I told you someone would know PAYE better than me (it's 8 years since I last had to do it for myself). At least jem's answer means you should get to keep a bit more of your money than I thought.

ERICS_MUM

I can't add anything useful, I just want to say well done to the OP, for firstly finding a job and then making yourself capable of covering another job for quite a bit of extra income.

Sorry I've not written this very elegantly/clearly but I hope you get my drift.


Linda

loubeedoo

Just to stick my oar in, but just in case you are budgeting and every penny does count etc. Can I ask has your new employer received a P45 from HMRC?

Or did you tick box B on the P46 you completed with your new employer?

If you did, then you will be taxed on a week 1/month 1 box, and therefore tax will not be cumulative and your taxable allowance for the year WILL NOT be taken into account. (To check, on your last wage slip, what does your tax code read, 747L or 747LX/747L Wk1?).

It means you will pay more tax now. You should receive a rebate (now paid through your wages) when your employer receives either your P45 or a P6 from HMRC, but I can't say for certain as I don't know your full circumstances, hopw long you received JSA etc.

Sorry to be the bearer of bad news

Congratulations on securing a job though:)