Higher tax on second job

vickaroo

Hi smart people in my phone

Im going for a new main job and if I get that along with my second job will push my around 1k into the 40% tax bracket, how in practice does the tax work - like I mean the actual deduction not the different brackets

Does my tax code change to the full 40% for the second job and then I get a refund at the end?
Do I have to do a self assessment?
Does my tax code stay at BR and then get a underpayment bill at the end?
Does my tax code change part way through the year to increase to the 40% (and if thats the case do I need to notify hmrc or is it automatic if I've already told them)

Honestly I've tried to look online but everything talks about the brackets and then all the working examples never have the example of 2 jobs and the actual how it works in principle 

I am looking at the possibility of reducing my hours down at my second job to not have to deal with the 40% drama however I don't know if that would be accepted with needs of the business (I'm clearing debt so stopping that role altogether atm is not an option)

So I just want to be prepared in the off chance I get the job and I can't reduce my hours at my second job (plus also I'm now down the rabbit hole and want to know the answer even if I don't get the job)

Dazed_and_C0nfused

If you are earning enough to pay 40% overall but not on either job on their own you should have a BR (basic rate) code for the new one and a small adjustment to the tax code for your existing job.

This is always an estimate so keeping your expected earnings upto date via your Personal Tax Account (after you have been paid for the first time by your new job) is a good idea.

Ultimately no one knows as well as you how much you expect to earn each tax year.

There should be no need to file a tax return.

HMRC will check if you pay too much or not enough after the end of the tax year and notify you if there a refund due or anything extra to pay.

Grumpy_chap

vickaroo said:

Hi smart people in my phone

Im going for a new main job and if I get that along with my second job will push my around 1k into the 40% tax bracket, how in practice does the tax work - like I mean the actual deduction not the different brackets

Does my tax code change to the full 40% for the second job and then I get a refund at the end?
Do I have to do a self assessment?
Does my tax code stay at BR and then get a underpayment bill at the end?
Does my tax code change part way through the year to increase to the 40% (and if thats the case do I need to notify hmrc or is it automatic if I've already told them)

Honestly I've tried to look online but everything talks about the brackets and then all the working examples never have the example of 2 jobs and the actual how it works in principle 

I am looking at the possibility of reducing my hours down at my second job to not have to deal with the 40% drama however I don't know if that would be accepted with needs of the business (I'm clearing debt so stopping that role altogether atm is not an option)

So I just want to be prepared in the off chance I get the job and I can't reduce my hours at my second job (plus also I'm now down the rabbit hole and want to know the answer even if I don't get the job)

Is it your basic salary of the two jobs combined that creep £1k into the higher rate bracket?
If so, it is entirely possible, if deductions for pension on both jobs is considered, that the pay subject to tax will remain at basic rate.

Marcon

vickaroo said:

Hi smart people in my phone

Im going for a new main job and if I get that along with my second job will push my around 1k into the 40% tax bracket, how in practice does the tax work - like I mean the actual deduction not the different brackets

Does my tax code change to the full 40% for the second job and then I get a refund at the end?
Do I have to do a self assessment?
Does my tax code stay at BR and then get a underpayment bill at the end?
Does my tax code change part way through the year to increase to the 40% (and if thats the case do I need to notify hmrc or is it automatic if I've already told them)

Honestly I've tried to look online but everything talks about the brackets and then all the working examples never have the example of 2 jobs and the actual how it works in principle 

I am looking at the possibility of reducing my hours down at my second job to not have to deal with the 40% drama however I don't know if that would be accepted with needs of the business (I'm clearing debt so stopping that role altogether atm is not an option)

So I just want to be prepared in the off chance I get the job and I can't reduce my hours at my second job (plus also I'm now down the rabbit hole and want to know the answer even if I don't get the job)

There is no drama, so reducing your hours to avoid something which doesn't exist makes zero sense.

If both your jobs are on the basis of being an employee (as opposed to self employed), you simply need to fill in something called a 'new starter' form. Your new employer will provide one because you won't have a P45 to give them - you don't get a P45 because you will still be in your old job. HMRC/the PAYE system will in due course take care of everything.

It might take a few months to get an accurate tax code for the second job, but if you're due a refund, that will also happen automatically. Any underpayment would also be picked up along the way.

So you can relax...