Extra Jobs = More tax?

Hawley_Gryphon

Hi, this may seem like a daft question but in my attempts to make ends meet I've topped up my part time working hours by picking up additional temp jobs and other part time jobs. I work 18.5 hours a week at one of them, 6 hours a week at the other one, and a various number of hours at any other I can pick up each week depending on what shifts are available. My tax code for the 18.5 hour job is something like 125L and I'm getting taxed a bit, but in ALL my extra jobs I'm getting hit for a huge amount of tax and taking home significantly less money than I've earned. Is this normal? It seems really harsh considering my overall annual income is still around the 12,500 mark.

ElefantEd

Yes, basically your tax code is being applied to your main job, your other jobs are taxed at the basic rate. It will get sorted out at the end of the tax year (April 5th) and you will get a refund. Which doesn't help you now but at least it means you'll get a nice bonus in just over a month.

tizerbelle

At present, all your tax allowance is being used against your primary job so every other job is being taxed on every penny earned. 

If the 6 hours a week job is pretty stable/permanent, you could speak with HMRC and ask to split your tax allowance between the 2 jobs e.g 75% to the 18.5 hour job and 25% to the 6 hours job.  Its probably not worth splitting with the more adhoc jobs. 

At the end of the tax year (so after 5 April) contact HMRC to see if you have overpaid tax this year

Hawley_Gryphon

Ah right ok, so the overpayment and potential reimbursement is something I would have to chase up then? It wouldn't happen automatically at the end of the tax year?

tizerbelle

It should happen automatically but it never hurts to give them a nudge!

chrisbur

I would suggest that you set up a personal tax account....
https://www.gov.uk/personal-tax-account
This will allow you to put an estimate for each job, which HMRC will use to split your tax allowance between jobs.
Unfortunately we are getting close to the tax year end so may not be in time to sort all or even any but worth a try and it will be there for next tax year.