(Original post by kangarooz)
Well I just got a second part-time job and was wondering if anyone knows how much tax I will pay? I heard it was quite alot from another person at work, My contracted hours will be 14.5 hrs a week, but I will also have quite alot of overtime, any help would be appreciated! Ta.
Overtime pay is taxed in exactly the same way as your basic pay, so that doesn't need to be addressed separately.
When you have two jobs, the default position is that the second job doesn't receive any share of your annual tax-free 'personal allowance', which is currently £6,475 for most people. Your 'main' job should receive the full allowance, provided that you're on the correct 'tax code' (generally "647L" - check this on your payslips). By contrast, you'll probably see a tax code of "BR" (b
ate) for your second job. This will mean that you pay Income Tax at 20% on all of your income from that job, plus National Insurance Contributions at a rate of 11% on any income in excess of £110 per week.
However, depending on your income levels form each job, it may be beneficial to arrange for your allowance to be split between the two jobs. To do so, just give your tax office a call (contact details here
) and ask them to do so. The arrangements are explained in more detail here
on HMRC's website.
Whatever you decide, if your total income for the 'tax year' ending 5 April 2010 is below your £6,475 allowance, you should be able to reclaim any Income Tax that you've paid. To do so, you'll need to write to your tax office with copies of the forms P45 and/or P60 that you receive when you leave each job or when you're employed at the end of the tax year (respectively), requesting the refund.
Edit: If you've not seen it already (and I assume that you haven't as you posted this as a new thread), take a look at this section
of my guide to Income Tax and National Insurance, which directly addresses your situations.