second job tax

[jojo1368]

please can someone tell me if a second job would be taxed at higher rate ?? ex boss told me this would only be the case if it took my earnings over 40,000 a year is this true ?

thanks in advance

[naflharrison]

yep a second job carries higher tax so unless the second job pays fantastically its not really worth it!

[jojo1368]

thanks thats what i thought but its a case of having to as a change of circumstances means i only have �60 a month for petrol and food ect so unless get second job won't be eating lol

[CheekyChops]

A second job doesn't carry a higher rate at all, unless the combined earnings from both push you into the next tax bracket.

You will pay no more tax in total than you would if you had one job earning the same amount as both your jobs added together.

[jojo1368]

thanks cheeky

[Skyline D]

A second job does NOT in itself mean higher rate tax. You only ultimately pay higher rate tax if your taxable earnings in total breach the 40% band (currently �34,800, meaning effectively total wages of �40k).

However, it is not possible to split your tax allowances between two jobs so, presuming you take them all in the higher paying job, the second one will see you pay tax initially at basic rate (ie without an exempt band). If you earn more than the basic tax allowance of �6,035 in job one it ultimately won't make any difference. If you don't then you'll overpay tax initially but get it back at the year end.

Fundamentally though your second job will be taxed at 20% flat rate (no allowances). NIC will of course still be payable if you earn over �105 a week.

[factor-fiction]

Good answer from skyline.

[hev]

skyline is wrong about splitting your allowances between two jobs. You can do this if you wish . If for example your 1st job is 5000 PA and another is 2500 you can arrange with HMRC to have a code of 500 at the 1st job so no tax is taken. then the remaining balance of 1035 would be allocated to your second job.Therefore the correct amount of tax would be taken so no need to wait for a refund at the end of the year.

[Skyline D]

Never heard of them agreeing to such an arrangement but there you go. The capacity of the Revenue to agree different things in different departments never ceases to amaze me.