2 Part-time Jobs

Alex_09

Hey

I currently work 20 hours per week but will soon be starting a 2nd part-time job working another 20 hours per week giving me a total of 40 hours.

For job 1 I earn £7800 per year before tax and on my 2nd £6265 before tax.

How will tax work on this and do I need to fill any forms in or anything? I havent yet started my 2nd job so don't know the tax code. Tax code on my 1st job is 543L.

Many thanks
Alex

jem16

Your 2nd job will be given the tax code of BR (Basic Rate) which means that everything you earn from that job will be taxed at 20%.

When you start your new job you should be given from P46 - tick Box C on that to declare that you have another job. If they don't give it to you ask for it.

newcastlebelle

a lot of people think they pay more tax by having 2 jobs.......but they dont

your 543 [ current allowance] is given to the earnings from the first job then anything you earn over that and all of earnings in second job is taxed at 20%.
if you were doing 20 hours overtime inthe first job[ instead of having a second job], you'd be taxed at 20% too

the one benefit from 2 jobs is that you only pay NI after you've earned £104 pw on EACH job

Alex_09

Thanks for your help guys!

Alex

C_Ronaldo

newcastlebelle wrote: »

a lot of people think they pay more tax by having 2 jobs.......but they dont

your 543 [ current allowance] is given to the earnings from the first job then anything you earn over that and all of earnings in second job is taxed at 20%.
if you were doing 20 hours overtime inthe first job[ instead of having a second job], you'd be taxed at 20% too

the one benefit from 2 jobs is that you only pay NI after you've earned £104 pw on EACH job

I always thought you payed more tax if you had 2 jobs, but thats handy to know

tigtag02

C_Ronaldo wrote: »

I always thought you payed more tax if you had 2 jobs, but thats handy to know

You only pay more tax because you earn more money.

If OP were working the 2nd lot of 20 hours in the 1st job (if that makes sense) she would pay the same tax (but more NI). She is actually better off this way.

newcastlebelle

isn't that what I said?

Alex_09

Hey Guys

Just another quick question. With this second job I mentioned in my original thread I am now earning £129 a month less than I used to get by having just the one full time job due to the 2nd job being lower paid - however I am paying something like £90 less tax/NI overall all than when I had just the one full time job so I am only £39 or so worse off - does this sound right to you guys? The figures in my original post are still the same.

My pay per month for my 1st job is £650 with my take home being £588. My second job is £522.09 with my take home being £410.09

Cheers
Alex

Edit - I am taxed and a lot less on my 1st job, is this because about 5k is tax free?

chrisbur

Alex_09 wrote: »

Hey Guys

Just another quick question. With this second job I mentioned in my original thread I am now earning £129 a month less than I used to get by having just the one full time job due to the 2nd job being lower paid - however I am paying something like £90 less tax/NI overall all than when I had just the one full time job so I am only £39 or so worse off - does this sound right to you guys? The figures in my original post are still the same.

My pay per month for my 1st job is £650 with my take home being £588. My second job is £522.09 with my take home being £410.09

Cheers
Alex

Edit - I am taxed and a lot less on my 1st job, is this because about 5k is tax free?

That looks about right to me. You now get £129 less. On that you would have paid 20% tax and 11% NI so you only got 69% of that or £89. So your net income goes down £89. Now you have two jobs you get two earnings threshold allowances for NI so instead of not paying NI on £453 you do not pay it on £906. You save 11% of £453 or just under £50. The £50 you save away from the £89 you lost leaves you £39 less as you say.

The difference in the tax is because you have all your allowance on one job and pay tax on all your earnings in the other, as you thought.

Alex_09

Thanks Chrisbur you have put my mind at rest. I have a couple queries about the figures you used:

Now you have two jobs you get two earnings threshold allowances for NI so instead of not paying NI on £453 you do not pay it on £906.

What is the £453 and £906?

Many thanks
Alex

chrisbur

Alex_09 wrote: »

Thanks Chrisbur you have put my mind at rest. I have a couple queries about the figures you used:

Now you have two jobs you get two earnings threshold allowances for NI so instead of not paying NI on £453 you do not pay it on £906.

What is the £453 and £906?

Many thanks
Alex

Each month you are allowed to earn £453 before you pay national insurance. If you have two jobs for two different employers then you get the £453 allowed in both jobs. The result is that you do not pay NI on £906 of your total income, provided both jobs are for over £453 a month.
The earnings threshold usually changes in April.