2nd Job tax?

wilgold

Hi,

Could someone please explain what tax I would have to pay if I was to get a second job? And how it works? I've been told that you automatically get taxed a high rate because it's a second income is this true? Im currently on £28k per year and I'm only looking to get a part time cleaning job on a evening or something similar. Thanks

wilgold

Also what about N.I? And I earn 28k b4 tax btw

Thanks guys hope someone can help

getmore4less

You don't get taxed at a higher rate, you get taxed on the total earnings arcoss all sources, jobs, savings etc.

NI kicks in per job but if just a few hours then unlikely to hit the lower limit when it kicks in.

LittleVoice

wilgold wrote: »

Hi,

Could someone please explain what tax I would have to pay if I was to get a second job? And how it works? I've been told that you automatically get taxed a high rate because it's a second income is this true? Im currently on £28k per year and I'm only looking to get a part time cleaning job on a evening or something similar. Thanks

At that level of earned income, your second job should be taxed at 20%, the same as the rate you pay now in your primary job.

jem16

wilgold wrote: »

Hi,

Could someone please explain what tax I would have to pay if I was to get a second job? And how it works? I've been told that you automatically get taxed a high rate because it's a second income is this true? Im currently on £28k per year and I'm only looking to get a part time cleaning job on a evening or something similar. Thanks

Your main job has you tax free personal allowances attached to it so the first £7475 ( spread over the year ) is tax free. The rest of it is taxed at 20%.

As you have used up all of your tax free allowances in your main job, your 2nd job will use a BR tax code which will mean all of that income will be taxed at 20%. So tax wise it's just the same as your main job - there is just no tax free bit.

NI will depend on how much you earn in your 2nd job but you haven't said how much.

wilgold

Planning on doing about 10 hours per week at £6 per hour so should be earning £60per week/240 per month.

Carl31

wilgold wrote: »

Planning on doing about 10 hours per week at £6 per hour so should be earning £60per week/240 per month.

ok, well deduct 20% for income tax, and 11% for NI

basically deduct 31% from 240 quid - 74.40

LittleVoice

Carl31 wrote: »

ok, well deduct 20% for income tax, and 11% for NI

basically deduct 31% from 240 quid - 74.40

No - don't deduct anything for NI. It isn't payable on that level of income.

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

If NI were payable, it wouldn't be at 11%: that's last year's rate.

jem16

wilgold wrote: »

Planning on doing about 10 hours per week at £6 per hour so should be earning £60per week/240 per month.

As LV has already said, no NI is due on that level of income so only tax at 20% due.

wilgold

Just been on the link it says for N.I 2011/12 lower earnings limit is £102pw and upper is £817pw. In my second job I am only going to get £60pw so I don't classify for paying N.I but I'll still have to pay 20% income tax?

However what about my main job? Won't they realise that I am earning more than £102pw? Or will i get a second tax code and they only class this N.I limit per each tax code that someone has?

Hope that makes sense

jem16

wilgold wrote: »

Just been on the link it says for N.I 2011/12 lower earnings limit is £102pw and upper is £817pw. In my second job I am only going to get £60pw so I don't classify for paying N.I but I'll still have to pay 20% income tax?

That's correct.

However what about my main job? Won't they realise that I am earning more than £102pw? Or will i get a second tax code and they only class this N.I limit per each tax code that someone has?

Hope that makes sense

As I said earlier you will have two tax codes. Your main job will have the tax free personal allowances so the usual code for that is 747L. Your 2nd job will have a BR tax code and all income will be taxed at 20%. Tax is treated as a whole so its your total income that's looked at but each source of income will have a tax code of some sort.

NI is treated separately and is applied according to the earnings on each. Your 1st job will pay NI at 12% but your 2nd job will pay no NI.