Having another part-time job on placement year

1886travel

currently I'm on 12 month placement and just got another job which is part-time. I feel confused about income tax and national insurance now..

Does that mean I am taking a second job even if it's part time and I'm a student on placement year?

ie. a placement (1th September 2013 - 31st August 2014) runs through 2 tax years (2013-2014 & 2014-2015). salary is 14k currently and the part time job offers £70 per week. Will it be charged more as in higher income tax rate?


personal allowance for tax year 2013-2014 is £9440.

Taiko

You pay tax on the combined income less total personal allowance. If you in any tax year earn above the allowance, you'll pay tax at 20%.

You would pay 40% tax on any earnings above £31,865 in any tax year.

agrinnall

On those figures you won't be paying higher rate tax (and to clarify Taiko's last statement, 40% applies on any earnings that are more than £31,865 above your personal allowance in 2014/5, which will be £10,000, so you'd have to earn £41,865 before paying any higher rate tax).

What you will find is that because your placement pay uses up all of your personal allowance you will probably be given a tax code for the part time job that taxes all of it at basic rate (probably BR) which means they'll take 20% of everything you earn in that job. The good news is that £70 is below the level at which employee national insurance is paid, so you won't have anything other than tax taken off.