Seeking Advice on Second Job Impact on Take-Home Pay

May-B

Hello, 

I am struggling to work out whether taking a second job is financially beneficial for me, as my current job is just below the 42% tax threshold. I cannot figure out what my monthly take-home pay would be if I accepted this second job, and I haven't found an accurate calculator for this situation. Can anyone help? 

My current job pays £48,350 annually (take-home pay is £2820.55 monthly), and I contribute £245.78 a month before take-home pay to my pension. I'm also repaying a Plan 1 Student Loan. 

The second job offer pays £192 monthly (£2304 annually). 

I live in Scotland. 

The reason for considering the second job is to help pay off debt and save for the future. My primary job covers essential needs, debt repayments, and saving for a deposit, the aim of the extra income from the second job would be to provide a bit of financial breathing room. 

Very grateful for any suggestions! 

Marcon

If you earn more, it's going to be financially beneficial. You only pay higher rate tax on earnings above a particular threshold, so even if you pay 42% on the whole £2,304, you'll still be getting an extra £1,336 a year. You won't earn enough in the second job to pay NI on the earnings from it.

It's possible there might be a bit more to pay on your Student Loan, but again, you'll still be better off financially by taking the second job than if you don't take it. See https://www.litrg.org.uk/working/employment/multiple-jobs#:~:text=If%20you%20have%20more%20than%20one%20employment%2C%20you%20might%20have,tax%20year%20%E2%80%93%20the%20personal%20allowance. and scroll down to the section headed Student Loan Repayments (it's not entirely a yes/no answer!).