Tax on second income

woodstoke

Hi, i am thinking about getting a part time second job. Could anyone give me an idea on the tax i would pay. I earn £31,000 on my main job, which i pay 20% tax i think, a friend has told me that it will be 50% tax because its a second income can anyone let me know how much would i have to pay on a parttime job of about £3,500 a year and does my employer pay the tax for me..... thankyou in advance

CLAPTON

you will be taxed at 20% tax which is your marginal rate i.e. 700 per annum

you will probably avoid further NI as your earning from the second job will be too low

it the job is PAYE then the tax will be deducted from your salary by your employer

heretolearn_2

Your friend is an idiot.

It doesn't make any difference how many jobs you have. The tax thresholds are the same according to your overall income. With what you say, you will still pay 20% tax overall.

sarahk100574

You'll pay 20% tax, plus any NI due on earnings up to approx £11,500 on your second job....
But if it looks as though your second job will take you up to about that level of earnings (about £42.5k per year total) then you may be taxed on all your second job earnings at 40% (D0 code).
Maybe thats what your friend was meaning? With all due respect to the previous poster, without knowing total levels of earnings its silly to say that you will be taxed on ut all at 20%!!:D

CLAPTON

the OP earns 31,000 pa at the moment
the OP is looking to get a second job paying 3,500 pa
one can be pretty certain that the whole 3,500 will be taxed at 20%.

sarahk100574

ha ha my mistake...serves me right for not reading properly!:eek: but still, bit harsh to say friend is idiot...not everyone understands tax/ni very well (clearly in this case!)
So, OP - now i've actually read your question, tee hee, you will be taxed at 20% on 2nd job, and if its evenly spread over the year, there will be no NI either! Thanks clapton!!

heretolearn_2

I didn't mean they were an idiot for not understanding tax. There's no reason they should. I still think they are an idiot for choosing to mislead their friend.

If they don't understand how tax works, why say anything? Why just make stuff up if you don't know about a subject?. Isn't that being an idiot? Some people just have to have an opinion on everything, even if they talk garbage....I've seen it cause so many problems, so it annoys me.

PlutoinCapricorn

Yes, there was someone on MSE recently whose friend had told him that musicians pay more tax than people in other professions. I asked the poster to ask the friend where this ridiculous information came from - no reply yet.

These people often misunderstand something: it may seem that you pay more tax on a second job because the personal allowance has been used up in the first job.

If the seond job ia a job not an assignment, i.e. you are an employee not self employed, then the employer will pay the tax for you - and you should get pro-rata holidays.