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2nd job and tax info?

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ok here goes....... i work part time, pay a very small amount of tax etc and get tax credits, ive been offered an extra job with a different company, will be very small amount of hours so what i'd … Read More
loupomm Avatar
8y, 3m agoPosted 8 years, 3 months ago
ok here goes.......

i work part time, pay a very small amount of tax etc and get tax credits, ive been offered an extra job with a different company, will be very small amount of hours so what i'd like to know is how will this be calculated, would i have to pay the higher rate of tax on the 2nd job even though the 2 jobs together still wouldnt be a huge amount? and how complicated would this make tax credits? would they just add the 2 incomes together? before or after the tax? geez what a palava!

i will seek proper advice etc but thought i'd ask here as you nice peep know everything!
loupomm Avatar
8y, 3m agoPosted 8 years, 3 months ago
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#1
Tax is based on your total gross income and is adjusted accordinly - this is what PAYE is supposed to take care of. If you have 2 or more jobs, the income is combined and you'll pay tax (minus your personal allowance) on your earnings, depending on where that threshold lies.

Tax credits are based on your family income and will take the above into account.
#2
so basically they tax one rate but on the 2 wages combined? and tax credits will be based on the same? thank you :)

would they take tax from 1 wage or both?
#3
loupomm
so basically they tax one rate but on the 2 wages combined? and tax credits will be based on the same? thank you :)

would they take tax from 1 wage or both?


Your personal allowance is a total, based on whatever job(s) you are paid for. Therefore I would advise you contact both payroll departments and let them know you've another job - they'll need to adjust your tax otherwise come the end of the year you will be short on tax payments and have to pay it back. eg:

If you don't tell each employer:
job 1. £10,000 pa. Personal Allowance £6,250 = £3,750 of your income is taxed.
job 2. £5,000 pa Personal Allowance £6,250 = no tax paid.

In reality, you should be paying tax on the salary of job 2 (20% of £5,000) and you'd need to make it up at the end of the year.


tax should come off each wage/payslip independently.


You'll need to contact Tax Credits if/when you start the job to alert them of a change in earnings. Otherwise, come next year you'll be paying it back. The adjusted Tax Credits will be based on your new combined earnings.
#4
Believe you pay BR on the second job and then claim it back if you are under the tax allowance rate

as for the comments above I dont think you get the 2 allowances. You get ONE allowance - anything over that is taxed hense 2nd job is taxed at basic rate and if you dont supply a p46 you get taxed at BR anyway
#5
Aquatic
Believe you pay BR on the second job and then claim it back if you are under the tax allowance rate

as for the comments above I dont think you get the 2 allowances. You get ONE allowance - anything over that is taxed hense 2nd job is taxed at basic rate


I didn't say you get two allowances!
1 Like #6
contact tax credits with any changes and they will adjust your money accordingly on your gross pay

not complicated you dont have to do anything other than declare any extra earnings

all wages will be taxed
1 Like #7
Xb0xGuru
I didn't say you get two allowances!


sorry - misread the post - cooking with wine - some of it might get into the food at some point but not yet!
1 Like #8
Aquatic
sorry - misread the post - cooking with wine - some of it might get into the food at some point but not yet!


lol, no worries - good luck with the wine ..er ... meal :)
#9
ok, so aslong as i tell both patroll dept and tax credit my whole age they will do the rest, thank you all :)
#10
loupomm
ok, so aslong as i tell both patroll dept and tax credit my whole age they will do the rest, thank you all :)


correctamundo
#11
thank you al, rep left

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