Income tax on part time secondary job

Phoenix72

If your pension contributions are taken from your gross pay then your taxable pay must be much less than the £44k, what do your payslips show as taxable pay? This should give you more leeway before hitting the higher rate threshold.

Tommy1975

Flugelhorn said:

Really tricky - TBH you need to stop chasing round trying to make this work - ever thought of moving somewhere else? 

Other thing to do is to go through the family budget really carefully to see what the options are for cutting down a bit or saving expenditure 

Honestly, we've been doing this for years now. There's nothing else to cut down on. We already don't buy new clothes, food shop very carefully, have no hobbies or social life. I haven't even been to a barbers for over 10 years now. And I'm prepared to do anything I can to avoid moving my wife and kids away from their family and friends. Hense the need for advice here

theoretica

Tommy1975 said:

theoretica said:

Tommy1975 said:

Hi, I currently earn just under £44000 per year working around 42 hours per week. [...]. I already pay 13.5% of my wages to the pension scheme [...] Except once I've earned £6000 anything else I earn will be taxed at 40%

Aren't your pension contributions lowering your taxable pay?  So you can earn another £12k at basic rate before the higher rate hits?

I don't know, is that the case? I assumed you have a tax threshold that stands wether you pay into a pension or not. But I'm on here for any advice I can get, so if you know this to be the case it would be massively helpful. Do you know where I can get a definitive answer to that one?

Look at your payslip - it should show 'taxable pay'.  Also your P60 for last year.

[Deleted User]

theoretica said:

Tommy1975 said:

theoretica said:

Tommy1975 said:

Hi, I currently earn just under £44000 per year working around 42 hours per week. [...]. I already pay 13.5% of my wages to the pension scheme [...] Except once I've earned £6000 anything else I earn will be taxed at 40%

Aren't your pension contributions lowering your taxable pay?  So you can earn another £12k at basic rate before the higher rate hits?

I don't know, is that the case? I assumed you have a tax threshold that stands wether you pay into a pension or not. But I'm on here for any advice I can get, so if you know this to be the case it would be massively helpful. Do you know where I can get a definitive answer to that one?

Look at your payslip - it should show 'taxable pay'.  Also your P60 for last year.

Or look at any payslip. Is the gross pay different from the taxable pay, the difference being the pension contributions?

Tommy1975

Bookworm105 said:

Dazed_and_C0nfused said:

Bookworm105 said:

she is allowed to transfer 10% of her personal allowance to you.
nothing more, read this Marriage Allowance: How it works - GOV.UK (www.gov.uk)

There are many families with a LOT less than you have who also live ion London yet they cut their cloth accordingly and live on it. Minimum wage rate is for those for whom that is their entire income rate, so wailing that as a 40% taxpayer it's not enough is just pathetic.

But the op won't be eligible for Marriage Allowance if they are a higher rate payer.  Although they may well not be with the decent level of pension contributions they are making.

correct, I got distracted by all the woe is me wailing.

I can't seem to find the comment you made about me, but just know I'm not here looking for sympathy. There's lots of people earning less than me, of course there is, but that will be little comfort to my family when we lose our home next year if I don't do something about it. My point is a couple earning 49k each have a combined income of 98k before entering the high tax bracket. So wanted to know if a couple can share their tax bracket to level the playing field a bit, that's all. I'm not currently in it, but will be once I earn 6k from part work. That's on top of the 42 hours that I already work. I don't need you to feel sorry for me. As it stands I'm looking at options to keep a roof over our heads and working for about £10 per hour after paying 40% isn't going to get us out of trouble. Not sure how else to "cut the cloth", we already live a very simple life. So if you've got some helpful advice that'd be great. If not why say anything? You don't know me. You don't know how I live. You don't know the effects this has had on my relationship with my wife. You have no idea how much pressure we're under. I didn't vote for austerity, I'm just trying to raise a family through it the best I can. They already go without enough. Im doing whatever I can to make sure we don't lose our home as well. Thanks for your time

Phoenix72

Ignore the negative comments and answer the questions being asked about your payslips. You came here for advice on tax not a lecture on your lifestyle.

Superhoopza

If I understand correct, the pension contributions won't lower taxable pay unless the OP is on a salary sacrifice scheme. Otherwise it's a straight percentage of the £44k gross pay they have quoted.

Phoenix72

Superhoopza said:

If I understand correct, the pension contributions won't lower taxable pay unless the OP is on a salary sacrifice scheme. Otherwise it's a straight percentage of the £44k gross pay they have quoted.

No, if payments are made via net pay scheme then this also reduces taxable pay.

Tommy1975

Phoenix72 said:

If your pension contributions are taken from your gross pay then your taxable pay must be much less than the £44k, what do your payslips show as taxable pay? This should give you more leeway before hitting the higher rate threshold.

Thanks, I didn't realise that. I'll have a look tomorrow 

Bookworm105

Tommy1975 said:

Bookworm105 said:

Dazed_and_C0nfused said:

Bookworm105 said:

she is allowed to transfer 10% of her personal allowance to you.
nothing more, read this Marriage Allowance: How it works - GOV.UK (www.gov.uk)

There are many families with a LOT less than you have who also live ion London yet they cut their cloth accordingly and live on it. Minimum wage rate is for those for whom that is their entire income rate, so wailing that as a 40% taxpayer it's not enough is just pathetic.

But the op won't be eligible for Marriage Allowance if they are a higher rate payer.  Although they may well not be with the decent level of pension contributions they are making.

correct, I got distracted by all the woe is me wailing.

I can't seem to find the comment you made about me, but just know I'm not here looking for sympathy. There's lots of people earning less than me, of course there is, but that will be little comfort to my family when we lose our home next year if I don't do something about it. My point is a couple earning 49k each have a combined income of 98k before entering the high tax bracket. So wanted to know if a couple can share their tax bracket to level the playing field a bit, that's all. I'm not currently in it, but will be once I earn 6k from part work. That's on top of the 42 hours that I already work. I don't need you to feel sorry for me. As it stands I'm looking at options to keep a roof over our heads and working for about £10 per hour after paying 40% isn't going to get us out of trouble. Not sure how else to "cut the cloth", we already live a very simple life. So if you've got some helpful advice that'd be great. If not why say anything? You don't know me. You don't know how I live. You don't know the effects this has had on my relationship with my wife. You have no idea how much pressure we're under. I didn't vote for austerity, I'm just trying to raise a family through it the best I can. They already go without enough. Im doing whatever I can to make sure we don't lose our home as well. Thanks for your time

again you have written a sob story instead of focusing on your question. I could introduce you to many families for whom 44k combined income would be an impossible dream.

I pointed out that your wife could transfer 10% of her personal allowance to you, HOWEVER, that is only possible if you remain a basic rate taxpayer. As your plan is to increase your earnings into higher rate she will no longer be able to do that.

It is clear from subsequent comment you don't understand how you are taxed, so focus on answering the question regarding your pension. On your payslip is the "taxable pay" figure lower than the gross pay figure. If it is then the threshold at which you hit higher rate tax is further away than you think it is.