Is second job worth it?

Horseunderwater

That would only work if the OP was not using up all her allowances for job 1. If you are using up full allowance in 1st job then BR code in 2nd is correct advice.
Also there are no local tax offices anymore that you can just pop into anymore - it is all done via a central enquiry line in Liverpool now.
http://search2.hmrc.gov.uk/kb5/hmrc/contactus/view.page?record=hpkspulskxM

oldboy64

Marisco wrote: »

Also fill in a P46 form and give it to your second employer, to make sure you pay the right amount of tax. Don't do what we did with oh's job and assume that HMRC knows about it!! It wasn't a second job, but I think it might work the same way, he had a private pension and a part time job, we just assumed that HMRC would know, so he had a bill of 2000 quid for underpayment of tax!! It was further complicated by the fact that he had the state pension as well!! But it won't do any harm to phone HMRC and find out, far better than to be bit on the bum further down the road!!

This is more common than people think. I have a total of 4 private annuities and two pensions from former employers.

I gave up a few years ago trying to get HMRC to sort out the proper code numbers. They issued code numbers to some that gave more allowances than were needed to cover the income. This resulted in too much tax being deducted from the total income at the 5th April.

I now ignore what they send me, I know most are wrong and have registered for self assessment.

I put my online tax return in at the end of January giving details of all my income and tax deducted in the previous tax year and at the end of the tax return it works out exactly how much I owe them (do an online card payment) or they will refund me if it is too much.

Much easier than trying to get them to issue correct code numbers.

zygurat789

The OP works 40 hrs pw and grosses £310. There is no problem with tax asc a pt job is unlikely to take total taxable earnings over £40k.
So for the pt job earings less than £149 will not have NI deducted but will have PAYE of 20% deducted.
£100 pw will net £80pw
£150pw will net £119.88
£200pw will net £153.88

Most of your wages will NOT go in deductions and you have to earn over £25k in your pt job before you pay 40p on each £1 you earn this amount.

THE thing to make sure of is your pt job has a code number of BR if you don't you WILL get a bill from HMRC for the full amount to be paid immediately - very unpleasant.

Marisco

zygurat789 wrote: »

The OP works 40 hrs pw and grosses £310. There is no problem with tax asc a pt job is unlikely to take total taxable earnings over £40k.
So for the pt job earings less than £149 will not have NI deducted but will have PAYE of 20% deducted.
£100 pw will net £80pw
£150pw will net £119.88
£200pw will net £153.88

Most of your wages will NOT go in deductions and you have to earn over £25k in your pt job before you pay 40p on each £1 you earn this amount.

THE thing to make sure of is your pt job has a code number of BR if you don't you WILL get a bill from HMRC for the full amount to be paid immediately - very unpleasant.

They will give you time to pay though. you can come to an agreement to have it added to your "normal" tax take, or you can (like we do) pay separately every month by DD.

zygurat789

Marisco wrote: »

They will give you time to pay though. you can come to an agreement to have it added to your "normal" tax take, or you can (like we do) pay separately every month by DD.

In the situation which the OP describes in the first post this is not a situation that she would want to find herself.

zygurat789

Each £1 earned may result in the reduction of tax credits and benefits, TC being reduced by 41p for each £1 earned. So whilst the tax is ONLY 20p and NI is ONLY 12p the reduction in TC is a wapping 41p making an effective tax rate of 73%. In other words you get to keep, in your pocket, 27p of every extra pound which you earn.

Kevc73

My first job I take home £210 after tax.Tax code is 950l.have recently split up and have taken on second job to help pay rent and maintenance.The second job is 16hrs a week at £6.50 an hour.Is it financially viable to take second job as first time I have ever done this.

zygurat789

Kevc73 wrote: »

My first job I take home £210 after tax.Tax code is 950l.have recently split up and have taken on second job to help pay rent and maintenance.The second job is 16hrs a week at £6.50 an hour.Is it financially viable to take second job as first time I have ever done this.

Financially viable is a value judgement, only you can decide, but it will be the case that the more you earn, the more disposable income you will have.

davenport151

As mentioned above but to add to that; make sure you fill in a P46 to state which is your main job (the one you are doing now). Then phone your area HMRC to make sure you also tell them which is your main employer. They should then give your current employer the correct code.
as also mentioned - this is the equivilant of doing over time as you do now in regards to what you end up with. Factoring in the extra hours/travelling and time/energy as well.