Paying 40% tax

holmes03

Hi 
I have currently got 2 jobs, my main job I earn approx 55,000 per year,
second job I earn approx 15,000 per year. 

This takes me well over to the 40% tax but the problem is I only do the second job as a favour to the employer and don’t actually want or need to do this.  HMRC website says that I’ll be paying 15,212 in tax per year does this sound about right? 

If so how do I tell a friend I no longer want to work there 😂

Flugelhorn

you still get to keep 60% of the extra 15K  - I used to extra bits of work, all of which were taxed at 40% - I did them because I quite liked doing them but also the 60% was better than 0%

Brie

holmes03 said:

If so how do I tell a friend I no longer want to work there 😂

"Hey Bob, you know working so many hours is really wiping me out and not leaving me enough time for gardening/ballet classes/playing with my kids.  You know, I think that Sue would be able to pick up a lot of this quite easily if you were to ask her."  

Anyone who tries to argue against that wouldn't be much of a friend.  

Bookworm105

strange post
if 60% of the money is not enough to motivate you to carry on doing the work then stop.
do you really need to be told how to talk to someone?

Albermarle

holmes03 said:

Hi 
I have currently got 2 jobs, my main job I earn approx 55,000 per year,
second job I earn approx 15,000 per year. 

This takes me well over to the 40% tax but the problem is I only do the second job as a favour to the employer and don’t actually want or need to do this.  HMRC website says that I’ll be paying 15,212 in tax per year does this sound about right? 

If so how do I tell a friend I no longer want to work there 😂

Normally if you have a higher income than you need, and are a 40% taxpayer, the best thing to do is to increase your pension contributions to benefit from very generous 40% relief.
A bigger pension could mean you could stop work altogether at a younger age .

molerat

holmes03 said:

Hi 
I have currently got 2 jobs, my main job I earn approx 55,000 per year,
second job I earn approx 15,000 per year. 

This takes me well over to the 40% tax but the problem is I only do the second job as a favour to the employer and don’t actually want or need to do this.  HMRC website says that I’ll be paying 15,212 in tax per year does this sound about right? 

If so how do I tell a friend I no longer want to work there 😂

Depending on allowances, pension and other allowable deductions etc about right.  Around £9428 on main job and £6K on job 2 coded D0.  If you enjoy the work but don't need the money then put it into a pension otherwise just tell them you can't do it anymore.

Grumpy_chap

holmes03 said:

Hi 
I have currently got 2 jobs, my main job I earn approx 55,000 per year,
second job I earn approx 15,000 per year. 

This takes me well over to the 40% tax but the problem is I only do the second job as a favour to the employer and don’t actually want or need to do this.  HMRC website says that I’ll be paying 15,212 in tax per year does this sound about right? 

If so how do I tell a friend I no longer want to work there 😂

Main job £55k
Second job £15k
Combined £70k

Assume England - different in other parts of UK.
Personal allowance £12.5k
£37.7k at 20% = £7.5k
£19.8k at 40% = £8k
Total tax £15.5k (about)
You keep £54.5k
The calculation from the HMRC website is about right.

If you just do main job and not the second job, then income £55k
Personal allowance £12.5k
£37.7k at 20% = £7.5k
£4.8k at 40% = £1.9k
Total tax £9.4k (about)
You keep £45.6k

That second job is worth £9k in take home now money.
You could make it worth more if you make pension contributions of the full £15k.

Other factors may change the indications above - for example marriage allowance, Gift Aid, etc.

[Deleted User]

The other thing to factor in is NI contributions. On the second job you will pay NI at the rate of 8% on £2430. 

This is too high as you will have already paid the maximum payable at 8% on your other job and it will be refunded. Something to bear in mind when you look at your net pay. 

sheramber

Grumpy_chap said:

holmes03 said:

Hi 
I have currently got 2 jobs, my main job I earn approx 55,000 per year,
second job I earn approx 15,000 per year. 

This takes me well over to the 40% tax but the problem is I only do the second job as a favour to the employer and don’t actually want or need to do this.  HMRC website says that I’ll be paying 15,212 in tax per year does this sound about right? 

If so how do I tell a friend I no longer want to work there 😂

Main job £55k
Second job £15k
Combined £70k

Assume England - different in other parts of UK.
Personal allowance £12.5k
£37.7k at 20% = £7.5k
£19.8k at 40% = £8k
Total tax £15.5k (about)
You keep £54.5k
The calculation from the HMRC website is about right.

If you just do main job and not the second job, then income £55k
Personal allowance £12.5k
£37.7k at 20% = £7.5k
£4.8k at 40% = £1.9k
Total tax £9.4k (about)
You keep £45.6k

That second job is worth £9k in take home now money.
You could make it worth more if you make pension contributions of the full £15k.

Other factors may change the indications above - for example marriage allowance, Gift Aid, etc.

No marriage allowance transfer as a higher rate taxpayer