Having two jobs is it worth the tax?

I only work 16 hours a week at the moment at my current job (which is just not enough)

I have been offered another part time job at 12 hours a week

together its 28 hours-I still wouldn't earn enough to pay tax..

but i have heard you have to pay the 20% tax on the second job!

please help

Reply 1

TheStudent.

I'm not sure about the accuracy of the information you've supplied, but assuming that you're right - you still pocket 80% of your wages from the second job. Up to you.

Reply 2

Narcissist

That's not true. You get your personal allowance irrespective of how many jobs you have.

Reply 3

SloaneRanger

Original post by Narcissist

That's not true. You get your personal allowance irrespective of how many jobs you have.

He will get his money back as a tax rebate, its not necessarily good in the short term.

Reply 4

gogobmn

By default, yes, the employer will deduct 20%, but that doesn't affect your personal allowance, it simply means they don't know how much tax to deduct so they play it safe. Specifically, you're not able to give them a P45 (P46 at best) so it's emergency tax code time. However, you're entitled to claim back any overpaid tax from HMRC after the fact.

If you have an idea how much you'll get annually from each job,.you can ask HMRC to split your allowance between the two. You'll have to nominate an amount for each job, but if both your estimates are less than what you actually earn, you won't pay any tax unnecessarily.

Reply 5

edjunkie

What may happen is that your tax allowance will be applied to your primary job. Your second job may taxed at basic rate. In these circumstances you need to contact your tax office, explain your situation and they should be able to issue the correct tax code for your second job. Even if it does not get sorted out at source, at the end of the tax year you will received your P60, if you are under the tax threshold, you will get a refund of any tax paid. Ultimately you will only be taxed on earnings over your tax free allowance. Although you will be liable for for some NI, as the threshold for paying that is lower, 28 hours a week will probably mean you earn enough to pay that.

So in 2012/13 if you earn in total less than £8105 no income tax to pay. In 2013/14 if you earn less than £9440, no tax to pay. If you earn less than the income tax threshold and have been taxed, call your tax office to get a quick refund otherwise it can take up to 18 months to get an automatic refunded.

(edited 11 years ago)

Reply 6

kunoichi

You shouldnt be taxed if you do not reach enough to pay tax regardless of how many jobs you have.

Reply 7

Emma:-)

Entertainment Forum Helper

Original post by bellyboo

You get the same tax allowance, regardless of how many jobs you have. The tax allowance just gets split between the 2 jobs.

Reply 8

StacFace

You will be taxed at first until you get a tax code that says you shouldn't be, you then get back the tax that you paid. The best thing to do would be to ring HMRC and tell them you have two jobs and want to split your allowance, as has been said above. Based on the number of hours you've said you work a week just under 60% of your pay will come from your current job and just over 40% will come from your new job (assuming you get paid the same per hour). Therefore I'd recommend splitting your allowance this way as then you have room for overtime pay in both jobs. For the tax year starting on 5th April the personal allowance is £9,440 (assuming you were born after 5th April 1948) so that'd work out as £5664 to your current job and £3776 to your new one.

Edit: unless the amount you'll get paid will be close to the amount to earn tax, which may result in one figure being slightly above what you expect to earn and the other slightly below with the rough figures of 60% and 40%. In that case work it out with non-rounded figures or just change them so they are both at the level you expect to earn with the extra divided out.

(edited 11 years ago)

Reply 9

SpicyStrawberry

You will probably be taxed in the short term, but you'll receive a rebate as irrespective of the number of jobs you have you're still earning below the threshold.