Tax on Sexond Job?

lauren6283

I cannot understand the info on the HMRC site so please can somebody help?

I am currently working 21 hours per week and am unable to receive a contract for more hours so am considering a second job. However, I cannot seem to work out if I will end up paying more tax on the second income, even though both would be minimum wage and around 20 hours per week.

When I enquired about a second job the employer told me that the hourly rate would be lower than it seems because I would be paying 25% tax, so only 75% of £6.36, is this correct? He also said I would possibly get a rebate at the end od the year, but surely this is unfair as if I worked the same amount of hours at the same place I would pay less tax and/or receive the money as I earned it ratjer than at the end of the year?

I am so confused, if anyone can help it would be much appreciated!

withabix

You can get a different Tax Code for each job (thus splitting your tax allowance between the two jobs), although YOU will have to contact HMRC to arrange this.

It is not up to an employer to do this and the default position is for all of your allowance to be applied to the first job.

System

To sum up.

You can earn £8105 per year before paying tax. This works out as £155 per week. It doesn't matter how many jobs you have. It's the level of income that matters.

When you start the second job you'll need to complete a P46 for the new employer. They'll use the info to put you on a provisional tax code and they'll contact HMRC to let them know about your new job.

To start with, as it's your second job they'll need to deduct basic rate tax (20%) from your earnings. If your weekly earnings from your main job are more than £155 per week you don't need to do anything else as you should be paying basic rate tax on the second job.

If your earning from the first job are less than £155 per week all you'll need do at that stage is contact HMRC with an estimate of your (annual) earnings. Depending on your estimates they could

A) set your tax allowance against the 2nd job if it's has the higher earnings
split your tax allowance between the two jobs.

McKneff

if you have 5 jobs at "£100 a week, you wont pay any more tax than having 1 job at £500 a week.

However, you would pay no NI on 5 jobs because each one would be under the NI threshold.

In one job at £500 you would pay NI at 12% over the threshold.

withabix

McKneff wrote: »

if you have 5 jobs at "£100 a week, you wont pay any more tax than having 1 job at £500 a week.

However, you would pay no NI on 5 jobs because each one would be under the NI threshold.

In one job at £500 you would pay NI at 12% over the threshold.

I'm not sure that actually works?

A bill for underpayment of NICs would arrive with you eventually.

00ec25

withabix wrote: »

A bill for underpayment of NICs would arrive with you eventually.

incorrect - do a search been answered many times before

lauren6283

So basically, after allowances, I'm not going to pay a higher tax rate on my second job?

Savvy_Sue

lauren6283 wrote: »

So basically, after allowances, I'm not going to pay a higher tax rate on my second job?

No, it all comes out in the wash in the end with tax.

Your hourly rate of take home pay will be less in the second job than in the first (assuming both minimum wage), but if your earnings in the first job are less than your personal allowance then you can, as already explained, split the allowance between each job.

mtem74

I would question why your employer suggested you'd be losing 25% of your wages. Sounds dodgy to me

elantan

sorry to butt in here, but years ago i worked a second job and paid br in the second job, i never got a rebate for the br tax i paid ( two part time jobs) i assumed it was because the second job was automatically charged at br... could i be due a tax rebate? how far back can i go? i worked there for 2 years for years ago so 5 years and 6 years consecutively

jem16

elantan wrote: »

could i be due a tax rebate?

Depends on amounts involved. If your first job paid you more than the personal allowance at that time then BR would be correct and your tax would be correct.

how far back can i go? i worked there for 2 years for years ago so 5 years and 6 years consecutively

You can only go back 4 years now so you would be out of date.