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Second Job Tax - Is it worth it?

p13192807
Posts: 3 Newbie
in Cutting tax
Hi there,
After a 45 minute wait to speak to someone at HMRC I am hoping you guys and girls can help me instead.
I am a second year university student going into a year long placement beginning next month.
At the moment I am working a part time job to supplement my income whilst I am at university. After my placement year I go back to university to finish my degree and will require a part time job again to supplement my income. I am toying with the idea of keeping this part time job whilst I am doing my placement to guarantee a job for my final year and working 1 day per week on top of the 5 days from the placement.
I am aware there are tax implications for having two jobs. I am just wanting to know some figures to work out whether it will be worth me keeping the part time job to help me in the long term or whether the tax will basically null any income I receive from the part time job making it pointless.
My wage from my placement year will be £14995 and an approximate wage from my second job per year will be £2184 totaling £17179.
Any help would be much appreciated!
Many thanks,
Dan.
After a 45 minute wait to speak to someone at HMRC I am hoping you guys and girls can help me instead.
I am a second year university student going into a year long placement beginning next month.
At the moment I am working a part time job to supplement my income whilst I am at university. After my placement year I go back to university to finish my degree and will require a part time job again to supplement my income. I am toying with the idea of keeping this part time job whilst I am doing my placement to guarantee a job for my final year and working 1 day per week on top of the 5 days from the placement.
I am aware there are tax implications for having two jobs. I am just wanting to know some figures to work out whether it will be worth me keeping the part time job to help me in the long term or whether the tax will basically null any income I receive from the part time job making it pointless.
My wage from my placement year will be £14995 and an approximate wage from my second job per year will be £2184 totaling £17179.
Any help would be much appreciated!
Many thanks,
Dan.
0
Comments
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You earn money...you pay tax on all of the money combined. Usually it's 20%... National Insurance also takes a cut...usually 12%. You keep the rest. It's always worth taking a second/third/fourth job...if you have the time. You also get a personal allowance on which you don't pay tax. You say you'll earn £17,179. Assuming your personal allowance is £10,600 then you only pay tax on £6,579 @ 20%. About £1,300.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S)
Loans cost 2.9% per year (Nationwide) = FREE money.
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Unless you earn over £155 per week in the second job you will not pay NI on it. Any extra you earn on the first job will be subject to 12% NI so you are better off having 2 jobs rather than just one.0
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Thanks!
I figured it would at least be of some benefit for me to have 2 jobs but just wasn't sure by how much.
I appreciate your help,
Thanks again!0 -
on the 2184 you will pay 20% tax and no NI
so you will pay tax of £436.80 leaving you with £1,747.20
only you can say whether it is worth it.0 -
Also bear in mind that your placement job will presumably spread over two tax years, so work out the figures with that in mind.Signature removed for peace of mind0
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Hi there,
After a 45 minute wait to speak to someone at HMRC I am hoping you guys and girls can help me instead.
I am a second year university student going into a year long placement beginning next month.
At the moment I am working a part time job to supplement my income whilst I am at university. After my placement year I go back to university to finish my degree and will require a part time job again to supplement my income. I am toying with the idea of keeping this part time job whilst I am doing my placement to guarantee a job for my final year and working 1 day per week on top of the 5 days from the placement.
I am aware there are tax implications for having two jobs. I am just wanting to know some figures to work out whether it will be worth me keeping the part time job to help me in the long term or whether the tax will basically null any income I receive from the part time job making it pointless.
My wage from my placement year will be £14995 and an approximate wage from my second job per year will be £2184 totaling £17179.
Any help would be much appreciated!
Many thanks,
Dan.
Tax is an annual thing, it all sdtarts again from scratch every 6 April. You have a personal allowance of £10,600 this year which means you can earn that much before you pay income tax, you may have other allowances but you didn't mention anything which would suggest that.
This £10,600 tax free comes to you as a code number ie 1060L , it is your responsibility to check your code number. If you have two jobs you may choose to split your code over them both, it will make no difference tio the total tax you pay, just to where you pay it from.The only thing that is constant is change.0 -
So just to clarify, the 20% tax I pay will be on anything over the £10,600 tax allowance from my combined income or just on the second job?0
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So just to clarify, the 20% tax I pay will be on anything over the £10,600 tax allowance from my combined income or just on the second job?
you pay 20% on anything above 10,600 for the tax year starting at 6th April 2015 and ending 5th April 2016
whether is one job , two or more make no difference
NI is different as it works on each job separately and on each pay period separately
so if you haven't started your secondment then you need to work out how much you will earn this tax year0 -
So just to clarify, the 20% tax I pay will be on anything over the £10,600 tax allowance from my combined income or just on the second job?
In your first month in the placement, the tax calculation will assume that you are going to earn that amount until the end of the tax year, and deduct tax accordingly.Signature removed for peace of mind0
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