better off ?

janey70

hi looking for a bit of advice for my daughter ,she works 2 jobs at moment totaling 38 hours a week at adult min wage £608 an hour but spends over £10 a week travelling to second job ,she gets taxed on her 2nd job about £55 p/m .
She has now been guaranteed 32hrs at first job which is a loss of 6 hrs a week on wot she does at moment with both jobs but wondering roughly what she would be taxed if she went for the 32 hrs and gave up 2nd job ?
she has rent to pay and full c/t so need to know if she will be at a big loss ?

spadoosh

on 38 hrs salary after tax is about £11100

on 32 hrs salary after tax is about £9500

traveling £10 = £520 annually not including holidays. No brainer

(based on a 747 tax code not sure its that anymore, dont pay attention)

Irrelevant of how many jobs she has anything over the 7475 threshold is taxed at the same rate untill the higher tax band (no way near that) She will in essence be paying all her tax contributions in one wage and the other will look like its tax free.


Obviously this doesnt factor in travelling time and inconvenience of travelling.

Also doesnt take in to account NI but that should be the same in either job (not sure about NI though tbh)

and just checked it is £7475

janey70

thanks Spadoosh but could you explain that a bit more easily for me its just way over my head ?

molerat

Need to know the breakdown of the hours at each job to give any thoughts, taxation will be the same but more NI may be paid with only one job.

janey70

she works 26 hrs on first job at moment and 12 hrs on second job p/w . ni is paid on first job and tax is paid on second job she gets paid weekly on first job but monthly on second hope this helps

spadoosh

In either job she will be taxed exactly the same pro rata. Anything over £7475 (most common but depends if she recieves benefits/allowances, doubt she will) will be taxed @ 20% so essentially what you need to compare is the 6 hours work and the £10 travelling costs.

Extra income
6* 6.08 = £36.48 per week

Less traveling costs £10

= £26.48 better off a week keeping her 2 jobs. It will actually be a bit less than this because of tax but to work that out will really throw a spanner in the works. Shell be looking at losing about £95 a month after travelling has been factored in

Really sorry im mega not good at explaining things!

But she will definately be quite a bit better off financially keeping the two jobs.

Acc72

My fag packet / round sum figures :

If I understand correctly, she will either work 1 job for 32 hours or 2 jobs totalling 38 hours (incurring £10 per week travelling costs).

Assuming both jobs pay the same rate (£6.08 per hour) then her income will reduce by £36.48 (6 x £6.08).

After tax, this will be (roughly) £30.

However, as she will not have to travel to the second job she will "save" the £10 costs.

Therefore, by working 32 hours a week she will work 6 hours less per week and be £20 (£30 - £10 travel costs saved) worse off per week.


Ps - whether your daughter gets paid weekly or monthly, does not affect the calculation.

janey70

thankyou spadoosh and Acc will pass this on to her and let her decide. been very helpful

Mikeyorks

Isn't it easier to just simply look at the fact she's losing 6 hours at £6 = £36pw. She 'saves' £7 tax on that and £10 travel. So her net loss is around £19pw. Then you decide if that makes it worth it?

agrinnall

To give you definitive figures we need to know what the tax codes on each job are - but if they are 747L (job 1) and BR (job 2) then the following should be right, taken from The Salary Calculator.

Job 1 - 26 hours per week

Gross pay £158.08
Tax £2.87
NI £2.30
Take home pay £152.92

Job 2 - 12 hours per week

Gross pay £72.96
Tax £14.59
NI £0
Take home pay £58.37

Current take home pay = £152.92 + £58.37 = £211.29

Job 1 - 32 hours per week

Gross pay £194.56
Tax £10.16
NI £6.67
Take home pay £177.72

So the take home difference is £33.57. But she saves the £10 travel costs, so £23.57 per week worse off overall.