Does working for 2 companies notify either of yhe employers?

getmore4less

Smart_guy wrote: »

Hi,

Just wanted to ask this. I am presently working full-time for a company. But presently cannot manage with the current income. So I am planning to join another company on full-time basis. But it is written on primary and 2nd employer s contact that u cannot do so and will breach the contact.

The question here is

1. Will my primary or the 2nd employer come to know on their own about this even if its not disclosed to either of them?
2. Does my 2nd income show up anywhere like Form 16 or PF or anythong else? Both pay by PAYE.

Check the terms carefully, they may be unenforcable.

refusing permision to do other work needs to be reasonable.

Your plan would be reasonable to refuse.

getmore4less

Abbafan1972 wrote: »

I'm not sure about your original question, but you will pay a hell of a lot more tax on a 2nd job.

Rubbish,

The same tax is paid on the total income across all jobs, 1,2,3... jobs makes no difference.

Maxjessdru

Not quite true getmore4less - on your first job your tax free allowance is taken off and the remainder taxed at the correct % - on a second job you will be on a br code (basic rate if on standard tax) so all of the income on a second job will be taxed, so technically you do pay more tax on a second job

Notmyrealname

Abbafan1972 wrote: »

I'm not sure about your original question, but you will pay a hell of a lot more tax on a 2nd job.

Why do people keep perpetuating this myth? Overall you would pay no more tax than if you had one job with the same income as both put together.

Sambucus_Nigra

Notmyrealname wrote: »

Why do people keep perpetuating this myth? Overall you would pay no more tax than if you had one job with the same income as both put together.

What Abba means is that the second job will be taxed most likely at Basic Rate without an allowance being applied, if the income from the first job exceeds their allowance.

Hence you will be taxed more on the second job than on the first.

LittleVoice

Maxjessdru wrote: »

Not quite true getmore4less - on your first job your tax free allowance is taken off and the remainder taxed at the correct % - on a second job you will be on a br code (basic rate if on standard tax) so all of the income on a second job will be taxed, so technically you do pay more tax on a second job

If we are getting into the possible (simply two jobs) rather than the OP's situation (one job currently and adding another without letting either know of the other) -

the personal allowance can be split between the two jobs - particularly useful if neither job would exhaust the allowance.

(Of course, you knew that but it may be useful to A N Other.)

getmore4less

Sambucus_Nigra wrote: »

What Abba means is that the second job will be taxed most likely at Basic Rate without an allowance being applied, if the income from the first job exceeds their allowance.

Hence you will be taxed more on the second job than on the first.

But then there is the secondary tax, National insurance I earn under that thereshold and the second job could be taxed overall less than the first job.

You might give Abba the benifit of doubt but........

Second income is not taxed more than if it was more first income.

Untill you get to around the 40% tax levels overall 2 jobs are taxed/NI less than 1 job.

Sambucus_Nigra

LittleVoice wrote: »

If we are getting into the possible (simply two jobs) rather than the OP's situation (one job currently and adding another without letting either know of the other) -

the personal allowance can be split between the two jobs - particularly useful if neither job would exhaust the allowance.

(Of course, you knew that but it may be useful to A N Other.)

I think asking the employer to split the allowance might alert them to the fact that the OP has another job...

Sambucus_Nigra

getmore4less wrote: »

Untill you get to around the 40% tax levels overall 2 jobs are taxed/NI less than 1 job.

Eh?........

LittleVoice

Sambucus_Nigra wrote: »

I think asking the employer to split the allowance might alert them to the fact that the OP has another job...

Yes. That's why I specifically excluded the OP's situation and said it was simply for someone having two jobs.

And again, it's not the employer one asks but HMRC who notify both employers of revised codes.

I'm sure you know that low codes can be issued for all sorts of reasons not just for those with two jobs.