Furloughed - How are you taxed on a 2nd job?

Holidaymaker2019

Hello, 
I have been furloughed and understand I can get a second job (restrictions on what hours can be worked are understood) my quest is, how are you taxed on the second job? Is it at the normal rate that you would pay as if it were your only job? Or is it a higher rate because it is an additional income? Also, what if the combination of the two jobs then took you over the higher rate threshold? 

Sorry if this has been asked before, I could not see it in another thread. Thank you for your thoughts in these troubling times. Stay safe. 

Jeremy535897

Each employer uses a notice of coding to deduct tax. Your allowances are presently allocated to your existing job. When you take on a new job, you will most likely have tax deducted at basic rate. All this is on account of your final tax liability. You get into higher rate tax when your total taxable income less allowances (usually £12,500) reaches £37,500, so you can have taxable income of £50,000 before you pay higher rate tax at 40% (different rates and levels apply in Scotland).

Where the earned income comes from (one job, two jobs, ten jobs etc) is irrelevant. It is total income that counts.

Semple

I can't see why it would be any different than if you had a second job in normal times. 

Obviously if you're furloughed at 80% pay, then you've got a little bit more room for earnings before hitting the next tax threshold. 

Holidaymaker2019

Jeremy535897 said:

Each employer uses a notice of coding to deduct tax. Your allowances are presently allocated to your existing job. When you take on a new job, you will most likely have tax deducted at basic rate. All this is on account of your final tax liability. You get into higher rate tax when your total taxable income less allowances (usually £12,500) reaches £37,500, so you can have taxable income of £50,000 before you pay higher rate tax at 40% (different rates and levels apply in Scotland).

Where the earned income comes from (one job, two jobs, ten jobs etc) is irrelevant. It is total income that counts.

Thank you for the clarification, that sounds completely logical. 

Holidaymaker2019

Semple said:

I can't see why it would be any different than if you had a second job in normal times. 

Obviously if you're furloughed at 80% pay, then you've got a little bit more room for earnings before hitting the next tax threshold. 

Thank you for your advice. That’s really useful.