Two Jobs And Tax And NI Contributions

Kimberley

I have a part time job working 22 hours a week. I do not pay Tax or Insurance. This week I started another cleaning job which is 10 hours a week so that is 32 hours a week in total. What I want to know is how do they work out how much Tax and Insurance I will have to pay considering they are 2 seperate jobs with 2 seperate wage slips or do I have to contact the Tax Office myself?

molerat

Your new employer should have given you a P46 ( http://www.hmrc.gov.uk/forms/p46exemptonline.pdf
or http://www.hmrc.gov.uk/forms/p46.pdf ) to complete where you will tick box C – I have another job or receive a state or
occupational pension. The problem is the second job will then be taxed at BR, 20% on all you earn. You need to contact your tax office and tell them how much you will earn in each job up until the end of the tax year and ask them to split your tax accordingly. If you post your figures up on here someone will be happy to advise what you should ask them to do.

NI is paid separately for each job so nothing needs to be done there.

Kimberley

Thanks job 1 I get £603 a month and job 2 I get £320 a month

molerat

So 603 x 12 = 7236 and 320 x 6 = 1920 = 9156. Probably the best way is to ask them to split the tax codes to about 700 / 110 (assuming normal 810 code) which will minimise the amount of back tax to pay.

Kimberley

Thank you. Can I ask why if your income goes up so does Council Tax? I thought Council Tax was a set amount for everyone even Millionaires but I have just had a calculation of £219 a month to pay :eek:

molerat

Council tax liability is based on the property and occupants. Income does not play a part in it but may affect any CT benefit.

Kimberley

I'm in Council Tax D.