Employing someone who already has a job - tax advice!

baz2277

Hi all,

I'm looking to take on another member of staff in the next few months. The position is part time (maybe 10-15 hours a week) and possibly only seasonal.

If someone applies who already has another job somewhere else and is just looking for some extra hours, what is the their tax position?

Would they get taxed more because it is their second job? I've come across this in a previous life - when I was a manager of a company, and potential employees have stated that the extra tax they would need to pay would make it unviable for them to work the extra hours for the pay on offer (but I've never looked into it any further - until now, when I am the business owner!)

Can it be fair that someone working say 30 hours a week who wants to work another 10 somewhere else has to pay lots of extra tax on those 10 hours?

Can anyone advise please?

Thanks in advance!

Alter_ego

Nobody pays any extra because of a second job. They get the same tax free allowance as everybody else, the rates of tax remain the same.
They do not get any extra allowance no matter how many jobs
NI is different of course.

baz2277

Thanks for the reply, I know there is no extra allowance, I just want to be able to explain to potential employees what their tax situation is likely to be, having had issues with this in the past.

Also I've just found this :

https://www.moneyadviceservice.org.uk/en/articles/pay-and-tax-when-working-in-more-than-one-job

Which sort of makes sense, although a page on taxaid.org.uk states "Only do this if your income from each job is predictable and stable" - in my situation, the hours I am offering are flexible and the position is also seasonal, so would this still apply?

General_Grant

baz2277 wrote: »

Thanks for the reply, I know there is no extra allowance, I just want to be able to explain to potential employees what their tax situation is likely to be, having had issues with this in the past.

Also I've just found this :

https://www.moneyadviceservice.org.uk/en/articles/pay-and-tax-when-working-in-more-than-one-job

Which sort of makes sense, although a page on taxaid.org.uk states "Only do this if your income from each job is predictable and stable" - in my situation, the hours I am offering are flexible and the position is also seasonal, so would this still apply?

What is the "this" to which that website refers? If it is about splitting a tax allowance (and hence having two numbered tax codes) then seasonal workers would almost certainly not be advised to do this unless they receive little in any other jobs they do. If they expect to earn £10K or more in work elsewhere then they can get their entire personal allowance through that job. What they need to know is that they would never have to pay more tax by working for you than by earning the same amount with their main (or any other employer).

zygurat789

General_Grant wrote: »

What is the "this" to which that website refers? If it is about splitting a tax allowance (and hence having two numbered tax codes) then seasonal workers would almost certainly not be advised to do this unless they receive little in any other jobs they do. If they expect to earn £10K or more in work elsewhere then they can get their entire personal allowance through that job. What they need to know is that they would never have to pay more tax by working for you than by earning the same amount with their main (or any other employer).

They would, in fact, pay less because we have two forms of income tax on earnings, PAYE & NI.
NI is only charged on income over £153 pw
Many employers only employ part time staff and ensure that they earn less than the minimum so that they don't have to pay the employers NI.

YORKSHIRELASS

I can understand why people think that they get taxed extra in their second job. As an example, the standard tax code is 1000L so this gives you a personal allowance (tax free earnings) of £10000 per year.

If you had one job where you earned £11000 you would use all of your personal allowance against that job.

So you would have no personal allowance left to use against a second job. Everything has to be taxed at a straight 20%. If you work 10 hours and earn £65 then you would receive £52 net.

In this scenario you are not actually paying more tax, it just seems that way. Everything over £10k is taxed at 20% whichever employer you are working for but you notice it more in the second job.

Of course there are all sorts of different circumstances and someone working part time in two jobs might not pay tax in either, or may be able to split their tax code.

Out of interest I have two part time jobs, pay 20% tax on my second job and just accept it because I know I am actually not paying any more tax than anyone else!