if i have two jobs, do I pay more tax??

Answer 1

It can work out in you favour to have a second job instead of working overtime at your main one.

With having a second employment you get a further NI allowance, which mean that you can earn roughly £70 a week free of NI, and then only pay it on the excess. This wasn't worth much before but now that its 11% its worth knowing.

The tax you will pay 22% on where ever you work after your personal allowance is used. The difficulty is around where your Tax allowance is 'used' in your main job but come the year end you would claim a refund.

Answer 2

Tax On 2 Jobs

Answer 3

2

Answer 4

You are not taxed based on the number of jobs you have, rather on the amount of taxable income you earn.

In the UK we have a scheme known as Pay as you earn (PAYE) which covers personal taxation. Under this scheme individuals pay tax on income as it is earned. In many other countries individuals pay tax annually under something similar to our Self Assessment scheme.

Your only or main job is taxed using your tax code as a basis for calculating how much income is tax free (simply multiply this number by 10, but under rare circumstances your tax code can be negative). Any income above this amount is subject to tax at the sliding scale rates, available at HMRC.gov.uk, i.e. 22%, 25% 40% etc.

Not everybody has the same tax code, there are reasons why someone might have a different code (for example if you owe tax on previous earnings).

Any further additional jobs you have are (or at least should be) taxed at basic rate.

At the end of every tax year (5 April) a calculation is made to work out how much tax you should have paid on your earnings, and how much you have actually paid. In the vast majority of cases, PAYE has accounted for all tax due. But in others there is some money owed, either by the individual or to them.

National Insurance complicates matters, only slightly however. Although you do get an allowance on which you don't pay NI, this is offset by the fact that there is also an upper limit, after which you don't pay further NI. Therefore the only people really affected by multiple jobs are those in between the upper and lower earnings limits. I believe the government is trying to reduce this effect year by year, until eventually it will be negligible.

Answer 5

You don't pay more tax per se. If you earned the same total income in one job you would pay the same amount of income tax. Providing the paperwork was done correctly when you started your second job you will probably be paying tax at the basic rate (a BR tax code on your payslip will confirm this) with your tax allowances being used against the income from your other job.

However in certain, slightly unlikely, situations you can sometimes pay more National Insurance Contributions.

Answer 6

Yes, but you're paying the same percentage. With two jobs you would earn more money and would have to pay more tax because of this.

Answer 7

fraid so - your second income would change your tax classification. you would be assigned a second tax code which would tell your second emplyer that all of your tax allowances have been included in the tax applied to your first source of income. Your allowances make up a certain amount of money you can earn 'tax-free' during the year. The current tax rates are:

on the first £2,020 - 10% (the starting rate)
on the next £29,380 - 22% (the basic rate)
on any income over £31,400 - 40% (the higher rate)

Answer 8

Yes you are put on basic rate tax which means you pay 22% to start even if it's just £10 per week

Answer 9

NO.

You pay the relevant amount of tax applicable to total income from the 2 jobs.

You are taxed on income only, not by the number of jobs you have.

Remember, your first £5035 is tax free.

Answer 10

There are standard rates of tax in the UK, and the number of jobs you have makes no difference. The income tax you pay is based on your total earnings. I.e. if you earn £20,000p.a. in one job, you will ultimately end up paying the same amount of tax if you earned £10,000p.a in one job and £10,000 p.a. in another.