How does tax work on a second job?

[Deleted User]

Hi,

I plan on getting a second job for an income boost. How does tax work with the second job? I understand with both the incomes I will still be under the basic rate threshold. I can't seem to find a tax calculator for this but my main job is on 23k (hopefully I will be able to push it between 25k-28k in May), with my second jobs due to pay between 8k-9k. This is around 65 hours a week between the two jobs (will be doable as the second job will be on Friday and Saturday evening and nights).

comeandgo

You would usually get your full tax allowance on your main job, your second job would be taxed at 20%.

TELLIT01

Number of hours worked doesn't matter for tax and NI purposes. Calculator on this site https://www.moneysavingexpert.com/tax-calculator/

[Deleted User]

TELLIT01 wrote: »

Number of hours worked doesn't matter for tax and NI purposes. Calculator on this site

A calculator to calculate tax on both jobs?

Dazed_and_confused

If these two jobs are your only taxable income then nothing will change with your existing job, tax and NI will be exactly the same.

With the new job you should be asked to complete a new starter declaration and if you complete this correctly your new employer should deduct 20% tax from each payment (will end up being different if you are Scottish resident for tax purposes).

NI on the new job will depend on the amount paid each pay period. But unlike tax you get an amount with no NI each pay period even though it is a second job.

[Deleted User]

Dazed_and_confused wrote: »

If these two jobs are your only taxable income then nothing will change with your existing job, tax and NI will be exactly the same.

With the new job you should be asked to complete a new starter declaration and if you complete this correctly your new employer should deduct 20% tax from each payment (will end up being different if you are Scottish resident for tax purposes).

NI on the new job will depend on the amount paid each pay period. But unlike tax you get an amount with no NI each pay period even though it is a second job.

Thanks! So If I earn 23k on job one and 8k on job 2, how would we calculate that? I also want to know if it would be more tax effecient then getting paid 31k on a single job

Dazed_and_confused

It would ultimately make no difference.

If you don't bother filling in the new starter declaration correctly (or your new employer does something wrong) there might be a short term difference but that would get sorted eventually with HMRC so you would ultimately end up paying the same.

You can pay less NI with two jobs though. That's because you get an amount each pay period (week/month etc) where no NI is payable. If you just had one employment then on the amounts you are being paid you would pay more NI than you will with two jobs.

If you want to check the figures HMRC have a couple of useful calculators. One for tax and a second for NI. Just google HMRC manual payroll calculations.

System

Samadk369 wrote: »

Thanks! So If I earn 23k on job one and 8k on job 2, how would we calculate that? I also want to know if it would be more tax effecient then getting paid 31k on a single job

Makes no difference - as long as you are under the threshold of £46,351 with both incomes combined.