Two Jobs - Tax and Hassle

markoneill27

Hi everyone,

Looking for help on my tax situation, but first I'll list all the information below.

1st job - 30 hours

Salary - £13000
Tax free - £11500

2nd job - 10 hours

Salary - £4500
Tax free - £0

So I would pay tax at 20% on £6000 which would make that 1200/year?

Does this seem right or have I missed something?

Also my main question is

Am I better doing any overtime and if so is there a limit where doing 3/5 hour shifts becomes pointless due to the amount of tax I would pay?

Linton

You are getting £17500/year income and so with an allowance of £11500 you should be paying tax on £6000=£1200, which you are. It doesnt matter whether your income comes from 2 jobs or overtime or whatever, you are taxed on the total and the tax codes set to ensure that is what you pay. With multiple jobs you can assign the allowance however you wish - just ask HMRC to adjust the taxcodes accordingly.

pjcox2005

markoneill27 wrote: »

Also my main question is

Am I better doing any overtime and if so is there a limit where doing 3/5 hour shifts becomes pointless due to the amount of tax I would pay?

Yes, still worth doing overtime. You'll be taxed on it but you won't ever be worse off as you'll get close to 70% of your hourly rate.

badmemory

If you are doing overtime on your second job then you won't be paying NI, so only 20% as long as you keep it fairly low each week/pay period. If it is on your first job then you will be paying tax & NI. So the most financially beneficial is overtime on your second job.

ChuckMountain

badmemory wrote: »

If you are doing overtime on your second job then you won't be paying NI, so only 20% as long as you keep it fairly low each week/pay period. If it is on your first job then you will be paying tax & NI. So the most financially beneficial is overtime on your second job.

To be clear you won't pay NI on your second job as you are earning under the NI limit at the moment. If you started to go over that limit you would pay NI £4,500 is £86 a week or so and the limit for no NI is £157 a week.

Unlike your tax allowance, NI is per job and per time period so if you get paid weekly and you do a whole load of overtime you may well end up paying some.