How much tax might I pay on a second job?

gadget88

I work 24 hours in retail and just over the tax free allowance. Currently living wage no bonus. Will I pay more tax on my 1st job? I have been offered a 4 hour a week job so 28 hours in total? How much extra may I earn? £183 per month is the 4x living wage rate per month. 

Archerychick

No, but if you’re already over the tax free allowance you will pay 20% tax on all of your second job earnings based on the information above.

there are a few take home pay calculators you may find usual, one for example is 

https://www.reed.co.uk/tax-calculator

Dazed_and_C0nfused

gadget88 said:

I work 24 hours in retail and just over the tax free allowance. Currently living wage no bonus. Will I pay more tax on my 1st job? I have been offered a 4 hour a week job so 28 hours in total? How much extra may I earn? £183 per month is the 4x living wage rate per month. 

No change on your existing job.

You will pay 20% tax on the earnings form the new job.

Flugelhorn

you will get a BR code for your second job so that will take base rate off it ie 20%

Grumpy_chap

Archerychick said:

No, but if you’re already over the tax free allowance you will pay 20% tax on all of your second job earnings based on the information above.

there are a few take home pay calculators you may find usual, one for example is 

https://www.reed.co.uk/tax-calculator

The OP would need to consider using some caution using the take home pay calculators as they are not usually able to work with multiple jobs / multiple income streams.

justwhat

You seem more concerned about paying tax on your extra income, rather that the extra income itself..

You could just put it into a pension that would give you tax relief.

You will still have NIC to consider.

Phoenix72

justwhat said:

You will still have NIC to consider.

Not on 4 hours a week I wouldn't think

Bookworm105

gadget88 said:

I work 24 hours in retail and just over the tax free allowance. Currently living wage no bonus. Will I pay more tax on my 1st job? I have been offered a 4 hour a week job so 28 hours in total? How much extra may I earn? £183 per month is the 4x living wage rate per month. 

you state that you are a taxpayer as a result of earnings on 24 hrs per week in Job 1 being "just over" the tax threshold. Agreed, £11.44 per hour (assuming you are 21+ years old and not in London) for 24 hours per week does put you just above the tax threshold 

so. assuming job 2 is genuinely a separate job and not just extra hours for your current employer in job 1, then you will pay 20% income tax on the total of the 4 hours work. Obviously therefore job 2 means you keep 80% of what you are paid. So 4 hours at minimum wage means you will get £36.60 take home pay per week in job 2 (assuming you are 21+ years old and not in London) .

You will have zero national insurance since you state the rate of pay is living wage, so will be less than £242 per week for job 2 (£1,048 per month if paid monthly) and thus below NI threshold. (NI is per job, per pay period. Unlike income tax, it does not work on a cumulative basis for the whole tax year)

I have ignored any pension deductions for job 2 as you will be below the compulsory "auto enrolment" threshold for that job and I doubt you will ask to voluntarily pay into a pension on job 2 

gadget88

Bookworm105 said:

gadget88 said:

I work 24 hours in retail and just over the tax free allowance. Currently living wage no bonus. Will I pay more tax on my 1st job? I have been offered a 4 hour a week job so 28 hours in total? How much extra may I earn? £183 per month is the 4x living wage rate per month. 

you state that you are a taxpayer as a result of earnings on 24 hrs per week in Job 1 being "just over" the tax threshold. Agreed, £11.44 per hour (assuming you are 21+ years old and not in London) for 24 hours per week does put you just above the tax threshold 

so. assuming job 2 is genuinely a separate job and not just extra hours for your current employer in job 1, then you will pay 20% income tax on the total of the 4 hours work. Obviously therefore job 2 means you keep 80% of what you are paid. So 4 hours at minimum wage means you will get £36.60 take home pay per week in job 2 (assuming you are 21+ years old and not in London) .

You will have zero national insurance since you state the rate of pay is living wage, so will be less than £242 per week for job 2 (£1,048 per month if paid monthly) and thus below NI threshold. (NI is per job, per pay period. Unlike income tax, it does not work on a cumulative basis for the whole tax year)

I have ignored any pension deductions for job 2 as you will be below the compulsory "auto enrolment" threshold for that job and I doubt you will ask to voluntarily pay into a pension on job 2 

Thanks that makes sense. If u did say alot more hours in second job would i then get much less? I currently get £61 off me each month and that’s due to pension and NI all be it low. I started getting taxed as they put the living wage up and never reduced any tax allowances. Usually I had never earned enough to be tax usually use to be above the 30 hour mark. I believe Labour have said taxes won’t increase or decrease. They have said they would pay a higher living wage though. It’s more for experience rather than money hence the small contract I asked for. 

gadget88

If I say did 4 hours less in my current job I work out I would maybe earn £40 less due to the second job tax I heard you can split tax between two jobs not too sure? I am unsure if I would reduce my hours or just do this job as extra?

chrisbur

gadget88 said:

I heard you can split tax between two jobs not too sure? 

You can do this but it will make no difference to the tax you pay.  Your tax will be calculated on your total taxable income, if you reduce tax by say £10 on one then that will increase tax by £10 on the other.