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Thread: Running with 2 job - tax implications

  
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    Running with 2 job - tax implications

    In this climate i consider myself lucky to have one Job on 37 hrs a week however i am a man in demand and have been asked to work around 10 more hours a week
    I currently am paid by the Council each month around £2k before tax, with the new addition of hours ill be getting around £800 extra per month before tax BUT from another pay area (School paying direct)

    Anyone got any ideas on the tax side of things or will it be alright and ill pick up a decent wedge extra

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    dtm_chris's Avatar
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    I have had 2 jobs in the past.

    1 was my main job at 35 hours a weeks, the 2nd was part time in the evenings and weekends. I was taxed at the full rate on the 2nd job because you dont get any tax allowances via your tax code as that is taken on your main job.
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    Phil B's Avatar
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    You will have to inform the Inland Revenue, fill out a tax return and declare the extra income. That will knock 20% off your extra income but if you're earning it on a self-employed contract basis you should be able to claim expenses (travel, meals etc).

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    I've been working 2 jobs last year, but not so much this year due to the credit crunch and me 2nd job not being that busy.

    My 2nd job boss filled out all the tax forms and that, all I know is that there was a form for the Inland Revenue to be filled out, I think it was just my basic details.

    For the tax side of it, bugger me it's bad! My main job gives me a basic wage, then x amount per flight that I do, which is also 75% tax free, so I'm not use to paying all that much tax, but my 2nd job is taxed at the full amount, and as said above, you won't get your tax free allowance on it either

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    on those figures you will be on £33'600.00 a year, which is still under the £37'400 threshold so you will be taxed the 20% still. As above inform the inland revenue, or do as Phill says and go self-employed to get the tax down but you need to see if its worth the extra hassle.
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    You don't need to do a tax return if you're not self employed - and there are certain criteria you need to fill in order to be considered self employed.

    You will get another NI allowance on any second income but will not get another Tax free earnings allowance.

    So you'll get around £411 NI free per month (£95 pw), but the whole lot will be taxed at 20%

    (800-411)x11%=£42.79 NI
    800x20%=£160 PAYE

    800-42.79-160=£597.21 Netke home on the £800

    All based on this being a second employment through PAYE.

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    Its all above me to be honest
    Does make some sort of sense though

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