Tax rates 27 January at 10:28AM in Employment, jobseeking & training 6 replies 131 views

Frozentoes16

I am working in a hospital and have a regular contract that I get my pay through and is taxed 'normally' I'm under any higher rate threshold. Over Christmas I did some additional work that got paid on a bank contract, that although it appears to on the same tax code appears to have been taxed much more heavily about 200 on 500 odd earnings.
Is this normal to be taxed so differently on a bank contract? Will it 'sort' itself out at the end of the financial year when it is known exactly how much has been earned?
Any advice/info appreciated 

Strummer22

Frozentoes16 said:

Will it 'sort' itself out at the end of the financial year when it is known exactly how much has been earned?

Yes. You'll pay less tax in subsequent months if your income returns to its previous level.

Dazed_and_C0nfused

Was this additional bank work paid with your normal pay or as a second job?

DullGreyGuy

Frozentoes16 said:

I am working in a hospital and have a regular contract that I get my pay through and is taxed 'normally' I'm under any higher rate threshold. Over Christmas I did some additional work that got paid on a bank contract, that although it appears to on the same tax code appears to have been taxed much more heavily about 200 on 500 odd earnings.
Is this normal to be taxed so differently on a bank contract? Will it 'sort' itself out at the end of the financial year when it is known exactly how much has been earned?
Any advice/info appreciated 

Presumably this was additional earnings on top of your regular income and therefore there would be no tax free element to it and would appear to be proportionally higher tax

baser999

Agree with DullGreyGuy, if this was on a separate contract it’d have likely been taxed at the full rate as all your personal allowances have been used in the PAYE coding applied to your main job.

Frozentoes16

Thanks for advice
Yes it is extra work on top of normal income. It's not a second job, but it is paid on a separate contract.
Previously have done extra work through normal contract but was offered a better rate for doing through bank contract.
Is there anyway of working out roughly what tax I would get in advance to work out whether I would better off on taking the better rate or getting the lower rate paid on my normal contract?
Thanks again 

molerat

You will be better off at the higher rate, tax and NI will be deducted at 32% whichever way you go. Not sure about pension deductions though.