Tax on second job

Miss_Sparkly_Star

I'm really keen to start a second job, what would be the situation re: tax.

At the mo I'm a twenty percnet tax payer.

fengirl_2

I think you mean you are a 22% taxpayer. It all depends on how much you earn at your main job - if under about £35k, then you would pay 22% on a second income, if over, or close to, then you would pay 40%.

mrkbrrws

Miss_Sparkly_Star wrote: »

I'm really keen to start a second job, what would be the situation re: tax.

Income tax: Your personal allowance is already used up by your first job, so all income from the second job is taxed at 22% until you reach the 40% band (as fengirl describes).

National Insurance Contributions: You get a separate earnings threshold of £100 per week for the second job, NICs are only payable at 11% on any income over this figure.

Murdina

when you start the second job employer should give you form P46 to complete. This enables HMRC to give you the right code. If not, employer will probably tax you as if it were your only job and you may end up with a nasty underpayment of tax. I would normally expect a second job to be coded BR which means they are just taking basic rate off, no allowances. Do not assume that HMRC will link up your two jobs without some prompting from you or your employer.

mrkbrrws

Form P46 was re-designed a year or two ago. Now there are simply three statements, one of which must apply to anyone. In this situation you tick Box C (I have another job or receive a state or occupational pension) and code BR is operated.

jimmo is correct in saying that if you do not complete a P46 or provide a P45 then the employer should use code BR anyway.