Second job zero hour contract

Jessd1982

Hi 
Me and my husband both work have 4 kids he works full time and I do 16 hours a week atm we claim child tax credit for our children we do not receive any working tax credits . My question is I want to take a bank contract with the nhs on a zero hours contract meaning I basically do a shift when I can or want too so as it’s my second job I would be taxed on this income I’m currently under the threshold for tax on my main job , does anyone know how this relates to child tax credits ? As it’s not a fixed hour adjustment I look at it this way eventually I’m gonna loose my tax credits with kids getting older etc but if it’s gonna hit me really bad with payments it may not be worth it , it’s a shame if it does as I’m looking to move into the hospital when a job comes avaible in the department so this is like my step in the door 
any advice or info would be appreciated 

jess 

calcotti

YourTax Credits award is based on the previous year's income unless there is a change of more than £2500 from year to year. You're obviously unlikely to earn more than that in the next couple of months. Your 2021-22 Tax Credits will, when they are renewed, by default be based on your 2020-21 joint income. If you think your 2021-22 joint income will differ from this by more than 32500 you will need to estimate the income and inform HMRC so they can amend the Tax Credits. The award for 2021-22 will only be finalised in 2022 when your final income is know and this may mean there has been an over or underpayment.
Because Tax Credits are calculated annually it is very difficult to work out impact of income changes for people with variable income (UC is much easier because it is calculated monthly).

Jessd1982

Thanks for that yes our income won’t exceed the £2500 buffer but my hours will change and obviously I will have a second job but with a zero hours contract so no set hours it’s all confusing as I want to progress in my career but having a little extra money is handy from the bank work 

Dazed_and_C0nfused

My question is I want to take a bank contract with the nhs on a zero hours contract meaning I basically do a shift when I can or want too so as it’s my second job I would be taxed on this income I’m currently under the threshold for tax on my main job 

You should initially pay tax on the new job (BR tax code) but once they report your first payslip details to HMRC the tax office should review your tax codes and if you have unused tax code allowances they will be allocated to the new job.

So you might end up with tax codes of say,

1000L at the existing job 

250T at the new job

Will be slightly different if you have applied for Marriage Allowance say,

1000N at the existing job 

125T at the new job

Jessd1982

I understand the tax side it’s the child tax credit hours thing I don’t understand as some weeks I will go over 16 hrs a week 

Babybelles

The amount of hours you work won’t affect your TC, providing you are still doing the minimum 16 hrs per wk you have told TC you work.
You’re more likely to face problems if your hrs reduce rather than increase.

The amount you earn from this 2nd job could cause an issue though as your award is calculated on your total joint household income, so it depends on how much income you’re likely to receive from both jobs.

calcotti

Babybelles said:

The amount of hours you work won’t affect your TC, providing you are still doing the minimum 16 hrs per wk you have told TC you work.

OP says husband works full time, the number of hours OP works isn’t going to matter.

Jessd1982

Yea my husband works full time and I currently work 16 hours a week with this new second job it would be literally a few shifts a month to get my foot in the door as to when a job comes up I can make a move over 

Babybelles

@calcotti I wasn’t sure if the poster was claiming childcare costs as then they would need to work at least 16 hrs.

calcotti

Babybelles said:

@calcotti I wasn’t sure if the poster was claiming childcare costs as then they would need to work at least 16 hrs.

Good point - I overlooked that, apologies.

Jessd1982

Hi
we don’t claim any childcare element it’s literally child tax credit we get we have 4 children and obviously each year it drops in payment wise so we know it will go eventually