secind job is it worth it?

goonarmy

My wife is five weeks pregnant and we both work full time. Im thinking f upping my incom with a second job but will it be worth he effort? Im salaried at 30345gbp for 2013, my tax code fo 2013 is 637l for 2013. I work monday to friday 8.30-5.30 so i would b looking for weeknd work. We get overtime at a decent rate 58.33 p/hr but it isnt consistant. I also have a student loan to pay off, last monhs deductions was 124 gbp. My company assess my total package as being 36483 inc company car and all benifits. Would a second job tip my paye over the threshold? Would i b working just to pay the tax man? Thanks in advance

gb12345

There are a couple of things to consider -

Firstly, the higher rate income tax band is based on income after your personal allowance is taken out, so you can knock 6370 off of your total income before seeing if you are in the higher rate band. Sou you would be able to earn c. 4k before going in to the higher rate.

The other thing to remember is that the rates are banded, so you will only pay higher rate tax on the money above the higher rate.

Only you can really say whether the extra net income you can bring in is worth the time and the effort.

biggy123

So, I don't know if I'm mis-reading this, bit I earn say 15k and am on 810L. If I get a second job, do I pay 40% tax after earning 8100 quid on the second job? i.e if I earn under that for the second job, do I earn tax free?!!!!
how would a second job affect my first job pay-wise?

goonarmy

For crying out loud! Im really bad at typing on my phone. Thread title....Anyway, haven got a job lined up as of yet but will be prepared to do anything. Picking and packing etc or labour, driving. Suspect it wouldnt be out standing pay but could be viable?

gb12345

biggy123 wrote: »

So, I don't know if I'm mis-reading this, bit I earn say 15k and am on 810L. If I get a second job, do I pay 40% tax after earning 8100 quid on the second job? i.e if I earn under that for the second job, do I earn tax free?!!!!
how would a second job affect my first job pay-wise?

Your income for the year from all sources (including interest) is all added together and then you can deduct the £8100 from it.

The higher rate tax band only kicks in at c. £34k, so the earnings between 8100 and 34k you are taxed at 20% and the excess earnings over the 34k you are taxed at 40%.

goonarmy

And i assume the time to do this is now as its the end/start of he new tax year coming up?

chrisbur

gb12345 wrote: »

Your income for the year from all sources (including interest) is all added together and then you can deduct the £8100 from it.

The higher rate tax band only kicks in at c. £34k, so the earnings between 8100 and 34k you are taxed at 20% and the excess earnings over the 34k you are taxed at 40%.

Assuming tax code of 810L then £8105 of your total yearly taxable income has no tax deducted. After the £8105 you then get a band of £34370 from which 20% tax is deducted, so for anyone on 810L 40% tax does not start untill you go over £42475.

goonarmy

chrisbur wrote: »

Assuming tax code of 810L then £8105 of your total yearly taxable income has no tax deducted. After the £8105 you then get a band of £34370 from which 20% tax is deducted, so for anyone on 810L 40% tax does not start untill you go over £42475.

So id be on the same tax as currently up to 12k ish of earnings? What would the effect be on the student loan deductions?