Tax and Student loan on 2nd job

shoei

Morning MSE's,

I wondered if anyone could help me I have just been offered a second job to try and up my income but I am struggling to calculate my net pay after all of the relevent deductions.


For my main job £19126 Gross and make Student loan repayments on this.


My second job I will work 37 hours over a 4 week period at £7.89 so£3795.09 a year. When I have used a tax calculator on the internet I have combined both salaries and my SL payment has increased by £29 and tax by £100. Is this correct as it seems a large jump is SL repayment in relation to salary increase.


I have also read that they will not deduct my SL from my wages as I will earn under the £15000 mark? Will I then have to do a SA?


Sorry for all the silly questions but panicking a little!


Thanks
Shoei

CLAPTON

well 9% of 3795 is 341 per year or 28 per month in extra SLC contributions

and 20% of 3795 is 759 per annum or 63 per month in extra tax

you do, however escape the 12% extra tax that you would be charged if your gross salary increased on your main income

your second employment should be taxcoded BR and you will not have the SLC deducted at source but you are still liable to pay the amount and no NI is payable

pkey

Same deal with me although I don't have student loan repayments. I work full-time and have been offered freelance work on the side - What do I have to do tax-wise, registered as self employed even though I'm employed by my main boss?

How does it work?

Also in answer to one of Shoie's questions - The threshold for paying back student loan has gone up to £21,000 pa - but I don't know if that applies to you if you were a student before the new threshold came into affect - you may want to check it with Student Loans.

Looking forward to MSE's answers to my questions...

Thanks Pkey

CLAPTON

pkey wrote: »

Same deal with me although I don't have student loan repayments. I work full-time and have been offered freelance work on the side - What do I have to do tax-wise, registered as self employed even though I'm employed by my main boss?

How does it work?

Also in answer to one of Shoie's questions - The threshold for paying back student loan has gone up to £21,000 pa - but I don't know if that applies to you if you were a student before the new threshold came into affect - you may want to check it with Student Loans.

Looking forward to MSE's answers to my questions...

Thanks Pkey

if you will be working as self employed (as opposed to a second employed post) then you need to register as self employed with HMRC

what sort of income do you expect to receive?

and the new 21k doesn't apply to existing SLC debts

xylophone

http://www.studentloanrepayment.co.uk/pls/portal/docs/PAGE/RPIPG001/RPIPS001/RPIPS006/REPAYMENT%20BOOK_2011_V1.2.PDF - page 14

shoei

Thanks everyone, do you know if I will be sent a SA automatically?

Mikeyorks

shoei wrote: »

Is this correct as it seems a large jump is SL repayment in relation to salary increase.

No it isn't correct. If you have a 2nd job and which is under the £15k threshold - in it's own right - you don't pay SLC on it.

I'm afraid tax calculators only work, for these oddities, if you already know the answer!

I have also read that they will not deduct my SL from my wages as I will earn under the £15000 mark? Will I then have to do a SA?

If you already complete an SA Return then your total PAYE income is aggregated and you do finish paying SLC on the 2nd job. As you only get the one £15k 'allowance'.
But if you don't complete an SA Return currently ..... then the 2nd job will not push you in to SA. Therefore - as above - you will only pay SLC on the main job.

amiehall

The advice you've been given overall is confusing and a lot of it is incorrect. You need to think of 3 things seperately: tax, NI, student loan repayments

Tax: you have one allowance that will be split over the two jobs so 20% of the earnings in the 2nd job will be due in tax as your 1st job uses all your allowance.

NI: Calculated separately on both jobs and your 2nd job is under the weekly threshold so no extra NI is due

Student loan: again calculated seperately on both jobs so you pay the 9% above £15500 or whatever the limit is now on the first job but no extra because of your second job.

There is no need to complete a self assessment. You do NOT want to request one as if you do self-assessment some of these rules change and you will end up paying more overall.

xylophone

Thanks everyone, do you know if I will be sent a SA automatically?

Did you have a look at the link in my post?

CLAPTON

Sorry people it is time everyone actually read Xylophone's excellent reference ; try page 14

Mikeyorks

xylophone wrote: »

Did you have a look at the link in my post?

The Student Loans advice is misleading. It infers a high probability of an SA Return being issued simply because there is a 2nd job and on which SLC is not being paid. That is not the case.