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Second job and tax?

Discussion in 'General Chat' started by shadowmare, Jun 22, 2017.


  1. shadowmare

    shadowmare The dog doesn't bite, me on the other hand...

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    Can anyone explain to me how tax works when you have two jobs? My main job is a monthly salary and I pay the usual NI and 20% tax on it. I'm thinking of helping a friend in his bar a couple of nights a week. This would be hourly wage. It would be less than £150 per week so I know there would be no NI payment on it. However, what then happens with the tax? Does the tax on my main job increase? Or am I just continuing paying the same tax on the main salary and then there's 20% on the weekly wage too? Feeling a bit confused about the system :confused:
     
  2. Siskin

    Siskin Look into my eyes....

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    My husband has two pensions, one is taxed as per normal with the tax code and the other is taxed at Basic Rate abbreviated to BR. Usually the job with the most income will have your tax code. Make sure HMRC are aware that this is another job in case they try to apply your tax code to it.
     
  3. kittih

    kittih PetForums VIP

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  4. Little P

    Little P PetForums VIP

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    If you're already over the tax free threshold you will be taxed as normal
     
    kittih and Lurcherlad like this.
  5. LJC675

    LJC675 PetForums VIP

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    All of your income from employment / self employment is piled together, therefore any additional earnings are just added on top. There are slightly different rules for dividends and savings

    If you have 2 jobs the earnings will be combined. As you are paying tax and NIC on your salaried job you must be earning more than £11,500 per year from that job. Therefore your £150 per week job will be taxed as well. As long as your TAXABLE earnings (i.e. the amount over £11,500) is less than £33,500 you will pay 20% on all of it. If you go above this the excess will be taxed at 40%

    e.g. lets say you earn £40,000 from your normal job per annum, then your other job brings in £7,800 (52x150):

    Total income 47,800
    Less personal allowance 11,500
    Taxable income 36,300

    Basic rate tax 20% 33,500 x 20% = 6,700
    Higher rate tax 40% x 2,800 x 40% = 1,120
    Total tax 7,820
    For NIC each job is assessed individually, so as long as you stay under £157 per week, no NIC on the 2nd job.

    As you are likely to be employed, your boss should tax you at source (i.e. you get the net pay only) for your bar job, just like your other job and he/she will have to pay the tax to the tax man. You are given a tax code each year, basically a number which tells your employer how much tax to deduct, you will need a 2nd code for your 2nd job, this would typically be a 'basic rate' tax code. This means that your main job will be using up your personal allowance of £11,500, your 2nd job will tax all of your earnings without any relief as you've used that up on the 1st job.
     
    MilleD likes this.
  6. steveshanks

    steveshanks PetForums VIP

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    What LJC675 says :) I have a funny code on my pension (have pension and full time job) ...just looked it up and it is-BR which means no surplus allowance and income from this source will be taxed at the basic 20% rate.

    Code BR stands for basic rate (in 2017/18, 20%) and is usually used for a second employment or pension where there is no tax free amount available to reduce your tax deductions. It is different from code 0T. With code BR, tax will only be deducted at basic rate at this job or pension, no matter how much you are paid. But where code 0T is used, tax at the higher and additional rates can be deducted once your income goes over a certain amount.
     
  7. shadowmare

    shadowmare The dog doesn't bite, me on the other hand...

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    Thanks everyone! That's really helpful. The second job would be just part time and less than 16 hrs per week with a minimum wage pay, so my total income would stay under 30k. It is just temporary measure for me, so I probably will only have it for a few months anyway.
     
  8. kittih

    kittih PetForums VIP

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    You may have to speak to the tax office so they know that you will have two jobs and that you need to pay full tax on the bar job. In theory it should all be automatic figured out but in practice it might not. You don't really want to retrospectively pay a lump sum of tax.
     
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