Am I overpaying tax?

Brief version: If you have more than 1 job do you end up paying more tax than if you did those hours for one employer?

With context-

I've been super motivated to pay off debts and start saving, so I wanted to work more hours but my employer couldn't offer it. I applied for some extra part time jobs, and now I have 3. Altogether I'm probably just doing full time (maybe 40 hours some weeks).

So I was feeling quite confident that I would be earning enough to pay off debts faster but people keep saying I'll be wasting my money and I'll be "done over by the tax man". How is this a thing? I really don't understand tax that well to be honest, but if I'm paying 20% then surely it doesn't matter where the money's coming from because I'll be paying the same if it's money from 1 employer or 3?

Comments

  • MovingForwards
    MovingForwards Posts: 16,898 Forumite
    First Anniversary First Post Name Dropper Photogenic
    https://www.thesalarycalculator.co.uk/twosalaries.php

    I'm a feeling years ago the tax was different, but now it all balances.
    Mortgage started 2020, aiming to clear it in 2026.
  • chrisbur
    chrisbur Posts: 4,042 Forumite
    Name Dropper First Anniversary First Post
    The income tax you owe at the year end will be decided by your taxable income, it does not matter how many jobs you have. However what you pay during the year may be affected by how your allowance is split between your jobs. This can result in excess tax being paid which is later refunded to you. What tax code do you have for each job?
    If you take into account national insurance, having more than one job usually means that you pay less NI but if all the jobs fall under the Lower Earnings Limit (£118.00 a week at the moment) you will not be treated as having paid NI even if all the jobs added together are over the LEL. So best to have at least one job where you earn over this.
  • Kayalana99
    Kayalana99 Posts: 3,626 Forumite
    First Anniversary First Post Combo Breaker I've been Money Tipped!
    Tmc wrote: »
    Brief version: If you have more than 1 job do you end up paying more tax than if you did those hours for one employer?

    With context-

    I've been super motivated to pay off debts and start saving, so I wanted to work more hours but my employer couldn't offer it. I applied for some extra part time jobs, and now I have 3. Altogether I'm probably just doing full time (maybe 40 hours some weeks).

    So I was feeling quite confident that I would be earning enough to pay off debts faster but people keep saying I'll be wasting my money and I'll be "done over by the tax man". How is this a thing? I really don't understand tax that well to be honest, but if I'm paying 20% then surely it doesn't matter where the money's coming from because I'll be paying the same if it's money from 1 employer or 3?

    You actually earn more as you only pay national insurance for one of your three jobs. The tax will be the same, as above you might end up paying extra if it gets messed up but you'd get that back - and you could just make sure your tax codes are all sorted so it doesnt happen too.
    People don't know what they want until you show them.
  • mrsyardbroom
    mrsyardbroom Posts: 1,946 Forumite
    Name Dropper First Anniversary First Post
    You get a personal allowance and you have to pay tax on anything you earn over that. It doesn't matter how many jobs you have you will still pay the same tax. If for some reason you are overcharged you will get a refund.
    Don't mess with pensioners. :cool:
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