Tax and Deductions on second job?

Chronos7

I haven't been able to find this information anywhere due to the complexity of the situation.

I am currently in full time employment (mon-fri) with a gross annual salary of 26000.

I am thinking about starting a weekend job which will pay between £85 and £100 gross per day. The position is only temp for 2 months, totaling 20 days (so lets say £2000 gross)

Does anyone know how this will effect my Tax / deductions on my total monthly income?

marliepanda

You'll get taxed 20% on the entirety of your second jobs money as all of your personal allowance is used up by job 1, and I assume you don't want it split.

Dazed_and_confused

I take it your comment about complexity was a joke

A second job is an every day occurrence for lots of people and you will need to make sure the new weekend employer operates basic rate tax code, 20%. You should ask them for a starter declaration form and complete the third section e.g. you already have another job.

There should be no impact on your existing job however of you don't ensure 20% tax is deducted on the new job any tax underpayment is likely to affect your take home pay at the existing job further down the line (the HMRC try to collect tax debts via adjustments to your main tax code)

Chronos7

Thanks guys. Kinda makes the weekend job pointless considering the other cost factors (fuel, parking). Thanks again.

getmore4less

You would pay less total tax on those hours than if you did overtime at the same hourly rate.

Don't forget to add the holiday accrual onto the day rates.

molerat

Chronos7 wrote: »

Thanks guys. Kinda makes the weekend job pointless considering the other cost factors (fuel, parking). Thanks again.

No different to doing an extra day in your current job, in fact slightly better as less NI to pay.

Chronos7

Sure, but my current day job is fixed salary, doesn't pay overtime or any extras.

The 85-100 is inclusive of Base Salary and Holiday Pay.. 85 is basic and 100 is if meet KPI

So on a bad day, £85 -tax, -Ni, -parking, -fuel/commute will leave about £40 take home for a 8hr saturday shift.. £5p/h

Thanks folks.

Dazed_and_confused

The NI due could vary quite a lot depending on whether you would be weekly or monthly paid and how many days you work per payslip.

There could be no NI due if you worked one day and were paid weekly.

marliepanda

Out of interest, how much tax were you expecting to pay?

getmore4less

Should clear at least
£85pd £65 NI will be less than £1pd.
£100pd £75 NI will be closer to £2.50pd

depending on how the pay falls in weeks/months the NI could be less but it is not much to start with.

there is probably free/cheap parking somewhere close on the Sunday and maybe the Sat.