Going to earn over £50k through 3 jobs

davilown

Hi as the title, I’m going to earn over 50k this year so will need to pay 40% tax on anything over that. 

I have a main job earning £32k, a pension at £12k and then bank work which has already reached £8k.
I’ve changed my amount earns on the HMRC app, but how can I get them to tax me at 40% on my bank work from now? Saves me having a tax bill at the end of the year.
thanks in advance

Dazed_and_C0nfused

If you change your estimated earnings at each job/pension that should prompt HMRC to review your tax codes and issue amendmend ones.

Because you haven't used your basic rate tax band up in full on your main job and pension it may be they leave you the pension and bank work as they are (BR tax code?) and make an adjustment to your tax code with the main job so you pay more tax on that one.

molerat

Set up a spreadsheet, input your total earnings each month, deduct the amount of tax paid from tax due and put that amount into a savings account.  Works exactly the same as PAYE, job done.

davilown

Thanks for the responses - will try and speak to HMRC to see if they’ll tax the bank pay at 40%. If not, it’ll be a savings account!

[Deleted User]

davilown said:

Thanks for the responses - will try and speak to HMRC to see if they’ll tax the bank pay at 40%. If not, it’ll be a savings account!

If you do that all of the bank work will be taxed at 40% meaning that you will have overpaid tax by at least £1200. ( 50000-44000) x (40-20)%. Dazed has provided the correct solution with regard to your main source of income while molerat’s is very sensible.

macman

Why on earth would you want to pay more tax as you earn rather than 8 months after the end of the tax year? You are effectively lending HMRC your money for zero return if you do that.

[Deleted User]

macman said:

Why on earth would you want to pay more tax as you earn rather than 8 months after the end of the tax year? You are effectively lending HMRC your money for zero return if you do that.

Exactly this. The op should provide an estimate of the bank earnings. If, for example, they are £15000, the underpayment would amount to £1800 if a BR code is applied as £9000 should be taxed at 40%. This could be collected by adjusting the tax code at the main employment to collect this at £150 per month.

davilown

Totally understand where you're coming from but the bank work won't last past the next financial year, and I want to be sure I don't have to over pay when I have less income.  I understand the savings part but I'm pants at that and prefer to pay it now if that's possible

csgohan4

have you considered overpaying into your workplace pension, even just temporary via salary sacrifice or SIPP to bring your taxable income below the 50k barrier

davilown

csgohan4 said:

have you considered overpaying into your workplace pension, even just temporary via salary sacrifice or SIPP to bring your taxable income below the 50k barrier

No, but will look in to it!  Many thanks

davilown

csgohan4 said:

have you considered overpaying into your workplace pension, even just temporary via salary sacrifice or SIPP to bring your taxable income below the 50k barrier

Actually, thinking about it, I already pay into a pension scheme so much get some tax free options there as well. 

Thanks again!