Tax on 2nd job?

BettiePage

I'm a student nurse who works seasonally (10 weeks a year) in retail and have just signed on to do 'bank' (like agency) healthcare (for the experience and a foot in the door as it were with the Trust). I'll only be able to do one or two bank shifts a month, due to 38hrs a week as a student.

My question is, will I get slaughtered taxwise for having this 2nd job?

Hereward

As long as you earnings from the second job don't push you up a tax band, you will be taxed (and NI'd) at you nominal rate (I assume this is currently 22% and 9.4%). Otherwise you will have to pay slightly more tax on the earnings over the threshold. The only downside to this is that you will pay tax (and don't forget NI) on all of your earning from your second job, as you will have used your tax free allowance on your first job.

CLAPTON

you will pay 22% tax on your second job earning assuming your total earnings (both jobs) are less than about 39,825


your NI will be 11% on anything above 100 per week ( Hereward statement is incorrect about NI )

Hereward

CLAPTON wrote: »

you will pay 22% tax on your second job earning assuming your total earnings (both jobs) are less than about 39,825


your NI will be 11% on anything above 100 per week ( Hereward statement is incorrect about NI )

I was assuming that the OP was paying into the company pension scheme ad had opted out of S2P, which gives you a 1.6 percentage point reduction on your NI payments; however, if the OP isn't paying into the company pension scheme then you are correct, the OP will pay an addition 11% NI with the tax, until they reach the upper earnings limity where it will fall to 1%.

PasturesNew

With two separate employers, to minimise the immediate impact of tax on your earnings, you should declare your highest earning job (the most over the year) as being your main job. Your tax free amount will be applied to these earnings by the employer.

For your lesser earning job, you will be taxed at source the full tax amount as per your income (22%). However, you will get this back from the tax office. You can either wait until the end of each tax year (5 April) after which time it will magically appear (couple of months), or, you can get onto them to reclaim it earlier as/when you've been taxed.

Yes, it's a pain, but that's the way it is.

PasturesNew

CLAPTON wrote: »

assuming your total earnings (both jobs) are less than about 39,825

Easy assumption to make! That's a lot of money.

Even when I am working full-time. Am self-employed part-time. Have a good income from online earnings. Receive interest on the cash banked from selling my house ..... adding ALL this income up I am still nowhere near the upper earnings for tax.

I've never been close to that upper earnings. Not many people are unfortunately.

If I ever get to pay 40% tax, I'll rejoice

CLAPTON

Hereward wrote: »

I was assuming that the OP was paying into the company pension scheme ad had opted out of S2P, which gives you a 1.6 percentage point reduction on your NI payments; however, if the OP isn't paying into the company pension scheme then you are correct, the OP will pay an addition 11% NI with the tax, until they reach the upper earnings limity where it will fall to 1%.

sorry you misunderstand


although tax is accumulative, NI is not

so for tax you add your total earnings and work out the tax.. it doesnot matter if you have one job, two , or more ..for any give total earnings the tax is the same.

This is not so for NI contribution however; each employment is treated seperately so on a second or third employment you can earn 100 a week before you pay any NI
so for any total earnings, 2 jobs is usually better than one

no logic , thats just how it works.

CLAPTON

PasturesNew wrote: »

With two separate employers, to minimise the immediate impact of tax on your earnings, you should declare your highest earning job (the most over the year) as being your main job. Your tax free amount will be applied to these earnings by the employer.

For your lesser earning job, you will be taxed at source the full tax amount as per your income (22%). However, you will get this back from the tax office. You can either wait until the end of each tax year (5 April) after which time it will magically appear (couple of months), or, you can get onto them to reclaim it earlier as/when you've been taxed.

Yes, it's a pain, but that's the way it is.

sorry this makes no sense.

if the OP is already paying 22% tax on the first job, then the second job will be coded as BR i.e pays 22% on everything which is correct and so there will be no tax refund.