Working two PAYE jobs at once

debthelp1

I have a full time job (35 hours a week) paying 35k but been offered a role on the side where I will do about eight hours a week in my own time but due to the industry it is in the role must be paid via PAYE. It will be around 8k per year.

I am wondering if I will be hammered on tax every month as if both jobs are full time until it gets to the end of the tax year and HMRC then work out what I earned over the full year?

It may not even be worth my while taking the job on if it means that monthly I am being left short so thought I would ask if anyone knows what happens

Dazed_and_C0nfused

debthelp1 said:

I have a full time job (35 hours a week) paying 35k but been offered a role on the side where I will do about eight hours a week in my own time but due to the industry it is in the role must be paid via PAYE. It will be around 8k per year.

I am wondering if I will be hammered on tax every month as if both jobs are full time until it gets to the end of the tax year and HMRC then work out what I earned over the full year?

It may not even be worth my while taking the job on if it means that monthly I am being left short so thought I would ask if anyone knows what happens

If you complete the new starter checklist correctly you should pay 20% tax from day one on the new job.

Which, from what you have posted, will have no impact on your existing job.

Nomunnofun1

debthelp1 said:

I have a full time job (35 hours a week) paying 35k but been offered a role on the side where I will do about eight hours a week in my own time but due to the industry it is in the role must be paid via PAYE. It will be around 8k per year.

I am wondering if I will be hammered on tax every month as if both jobs are full time until it gets to the end of the tax year and HMRC then work out what I earned over the full year?

It may not even be worth my while taking the job on if it means that monthly I am being left short so thought I would ask if anyone knows what happens

You would actually be better off than if you had received an £8k pay rise on your main job as you will pay no NIC on the second job. 

You will never be worse off, taking home £6400 per annum on the second job. 

etienneg

You have no real cause for concern. HMRC will have no idea about it being part time. They will just know how much you are paid each pay day. They will allocate a tax code for your second job - most probably different from the one used for your first job. It may well be just BR, so that your second employer will deduct tax on all your new earnings at basic rate, your personal allowance remaining with the first employer.

There may be a small hiccup to begin with, as the new employer won't have a tax code at the start and the first pay will be subject to emergency tax, but that's likely to be about right anyway in your circumstances. Whatever happens at the beginning, it will quickly settle down anyway. Your extra pay will be taxed, but fairly, so you will be better off.

chrisbur

etienneg said:

There may be a small hiccup to begin with, as the new employer won't have a tax code at the start and the first pay will be subject to emergency tax, but that's likely to be about right anyway in your circumstances. Whatever happens at the beginning, it will quickly settle down anyway. Your extra pay will be taxed, but fairly, so you will be better off.

The emergency tax code will not be "about right"   It will result in being undertaxed.   When you complete the starter checklist make sure to select option C that you have other taxable income.  You will then be allocated a BR tax code which will take about the correct tax.  HMRC may eventually issue split codes between the jobs or leave it as it is, either way should take near enough the correct tax.

Regarding NI do the two jobs have any connection or is this new job with a completely different employer.  If there is any connection then you may have to pay NI on the combined income.

debthelp1

Thanks everyone, completely different roles so the NI news is good news!

molerat

debthelp1 said:

Thanks everyone, completely different roles so the NI news is good news!

With an unrelated employer ?

Nomunnofun1

molerat said:

debthelp1 said:

Thanks everyone, completely different roles so the NI news is good news!

With an unrelated employer ?

I took from the first post that it wasn’t but the point is valid. 

debthelp1

molerat said:

debthelp1 said:

Thanks everyone, completely different roles so the NI news is good news!

With an unrelated employer ?

Yeah totally seperate employer

EnPointe

debthelp1 said:

I have a full time job (35 hours a week) paying 35k but been offered a role on the side where I will do about eight hours a week in my own time but due to the industry it is in the role must be paid via PAYE. It will be around 8k per year.

I am wondering if I will be hammered on tax every month as if both jobs are full time until it gets to the end of the tax year and HMRC then work out what I earned over the full year?

It may not even be worth my while taking the job on if it means that monthly I am being left short so thought I would ask if anyone knows what happens

why would you ? 

it;s unlikely unless  your  first jopb  hasa really low tax code due to car / perks that  your  8k will take you into 40% if it genuinely will be 8k / yr 

as  others have said if you correctly complete the HMRC new starter;s checklist you'll be taxed as Basic rate  by the second job  ... 

it;s a  fairly common taxc 'problem' as lots of people have second PAYE  jobs   on top of their 'day job'   ( Retained !!!!!!, Military reservists,  Health service staff where  extra shifts are done  through NHS Professionals rather than ans ovettyime/ through a trust bank)  events services people,  people who still  work the odd shift at a fast food place to keep their  employee perks  or  work behind a bar at the weekend )

EnPointe

chrisbur said:

etienneg said:

There may be a small hiccup to begin with, as the new employer won't have a tax code at the start and the first pay will be subject to emergency tax, but that's likely to be about right anyway in your circumstances. Whatever happens at the beginning, it will quickly settle down anyway. Your extra pay will be taxed, but fairly, so you will be better off.

The emergency tax code will not be "about right"   It will result in being undertaxed.   When you complete the starter checklist make sure to select option C that you have other taxable income.  You will then be allocated a BR tax code which will take about the correct tax.  HMRC may eventually issue split codes between the jobs or leave it as it is, either way should take near enough the correct tax.

Regarding NI do the two jobs have any connection or is this new job with a completely different employer.  If there is any connection then you may have to pay NI on the combined income.

Split codes   is  typical  when no one job pays more than  the  relevant personal allowance , in the OP's situation  they may as well leave theor full personal allowance in the 35 k job