2nd Job Tax question

Mick88

Hi everyone,

I currently work a day job 37.5 hours per week and earn £15,800 on tax code 1185L.

I have been offered a saturday evening job at a rate of £10 per hour and will be doing 6 hours per week.

I was wondering what tax I would have to pay on my 2nd job, im aware of the BR tax code for 2nd jobs at 20%.

I was curious as to whether this would result in my main job getting taxed more as a result? I'm trying to figure out if taking the job would be worthwhile for me or if it would result in me losing money.

Any advice would be greatly appreciated

Linton

When you have multiple incomes HMRC allocate separate tax codes to each stream such that the total adds up to your tax allowance. In this case I guess they would leave the full tax allowance with your main job and therefore give you zero tax allowance for your Saturday job.



HMRC will change the allocation between the jobs on request. I think you may be able to do this from your online tax account. If not just phone them.

00ec25

your personal allowance is £11,850
job 1 pays £15,800, so leave that as it is, tax code 1185L
so you will work 37.5 x 52 = 1,950 hours per year and have tax of £790 and NI of £885.12 leaving you with an effective rate of pay of 15,800-790-885.12= £14,124.88/1950= £7.24 per hour


job 2 will be on BR tax code since all of your code/allowance is already used up by job 1
you will earn £60 gross, of which £12 will be deducted as 20% income tax. You will NOT pay any NI on the £60 as it is below the NI threshold (£162 per week)
an effective rate of pay of 60-12= 48/6 hrs = £8 per hour

taking the second job is a no brainer money wise

Mick88

This is extremely helpful, guess I have a 2nd job now. Thanks alot for your help everyone.