Income tax on 2nd job

Baled

Hi

My daughter has worked for a recruitment agency for a few months doing note taking assignments.

From what I understand there's no minimum hours set per week, it's more like an ad-hoc basis. Her wages can vary depending on what assignments are available but have always been under her 1257L personal allowance.

If she gets a 2nd job with regular contracted hours how will any possible tax be calculated?

I understand if both jobs pay under the personal allowance amount you can split your allowance but how would that work if one job has variable hours? What happens if the 2nd job exceeds her allowance? Would she pay BR rate on all of those earnings?

Thanks in advance for any advice.

BikingBud

https://community.hmrc.gov.uk/customerforums/pt/8ca3044b-ddd1-ec11-bea1-00155d975a55

Dazed_and_C0nfused

Baled said:

Hi

My daughter has worked for a recruitment agency for a few months doing note taking assignments.

From what I understand there's no minimum hours set per week, it's more like an ad-hoc basis. Her wages can vary depending on what assignments are available but have always been under her 1257L personal allowance.

If she gets a 2nd job with regular contracted hours how will any possible tax be calculated?

I understand if both jobs pay under the personal allowance amount you can split your allowance but how would that work if one job has variable hours? What happens if the 2nd job exceeds her allowance? Would she pay BR rate on all of those earnings?

Thanks in advance for any advice.

She should tick Statement C on the new starter declaration and the new employer will use code BR on her first payment.

Once the new company report that first payment to HMRC they will review her tax codes and if necessary split the tax code allowances between the two jobs.

So she could have codes of sat 757L and 500T.

Your daughter will have a much better idea of what her taxable income could be from each job so if she doesn't agree with the codes she can update her estimated earnings on her Personal Tax Account and this prompt a review of her codes.