Tax question, my main job is now my 2nd job... aaaaaahhhh help!!!?

Question

Iv just resentley got a new full time job of 35hrs a week. I start on monday and is now thinking of maybe still staying at my Original job but only doing 1-2 shifts a week.. I know i will get taxed by 22% of my 2nd job.. Iv been told to giv my new job my P60 n then to go to the tax affice to let them know that my new job is now my 1st job.. (its confussing) lol
Am a bit confussed to why i have to do this, why does my new job need to know how much taxed iv payed n what iv worked... ect... Also my friend says that in the long run having 2 jobs isnt gunna be worth it.. What do you think>>??

Answer 1

Fengirl is spot on with all the tax aspects of your question.

I am intrigued by your friend's comment. It's utter rubbish as far as the financial details go. So is your friend saying -

1. You'd be better off not working at all (because of benefits), or

2. Your health may suffer from the hours spent at two jobs, or

3. You will have less money working two jobs?

The first may, unfortunately, be correct and the second could be a cause for concern. But you have posted this in Taxes so I suspect it's the third option.

If I am right and your friend is working ask them if s/he will turn down thier next payrise. The reason is the quirk in our system caused by national insurance. Most employees earning a certain amount of money will have a higher net pay if it is earned from two jobs than if it is all earned in one employment.

Answer 2

You need to ask the employer that you are working fewest hours for for a P46 on this you will be able to declare that this is not your main job and that will generate you a BR tax code from it Your P60 has nothing to do with it because these are only issued at the end of each financial year and any P60 that you have will relate to last year.

If you dont then the job that you've most recently taken on will be classed as your second job and therefore you will have a tax code BR and will be taxed at 22%

On your full time job, again ask for a P46 and declare this as your main or only job this will then be taxed in the standard way.

However its worth noting that at the end of the year if you add up what you have earned in total and what you have paid in tax in total and then go to the inland revenue website to find the tax threshholds for this year then calculate the tax that you should have paid. If what you have paid is more than what you should have paid then send your P60s to the tax office with a covering letter asking for a refund. If however when you calculate what you have paid is LESS than what you owe them expect to get a tax code adjustment so they can recoup the money. If you calculate that you owe them less than £5 dont bother sending the P60s because they will write the money off anyway. So tax wise you can sort it all out at the end of the financial year anyway.

Answer 3

Each company will pay tax on your behalf. The first company will have had your P45 details so they can pay the lower rates for you. Because you are already working you cannot pass this on the the second company so they will pay emergency tax (at the highest rate) to cover you. You will also pay NI on this. At the end of the year (6th april) you should fill out a self assessment (SA) form. On this you will fill in the details given to you by each company on your P60s or whatever, stating how much you earned and how much tax they paid on your behalf. If it turns out that you paid too much then you will get some back (the most likely option), If you have not paid enough you will get a bill. This can either be paid directly by you or taken off your next years entitlement via your PAYE code. If your second company does NOT pay the tax and NI for you you will have to fill out a SA as a self employed person telling the gov. how much you earned. As NO tax will have been paid on this you will be taxed accordingly. You may also have to pay NI2 contributions if you earned over a certain amount. If you don't fill in an SA you may still get any money owed to you back as the Inland Revenue may see the over payment. Either way, call the Inland Revenue and let them know you will be doing 2 jobs and they will advise as necessary. Hope this helps.

Answer 4

OK, calm down, its possible to sort this out and its a perfectly usual situation.
First, you dont give your P60 to anyone - you keep that safe.
Secondly, I would, if possible, get your exisitng job to give you a P45 as if you have left them. This you should give to the new job. That will keep your tax deductions straight and you wont pay too much tax on your new job.
Then ask your exisitng job where you are going to work fewer hours to give you a P46. You sign this to say this is not your only or main job. They should then deduct 22% tax from your 2nd job, which will be correct.
If your exisitng employer will not do this for you, you will need to sign a P46 with the new job, ask them for the name of their tax office and then contact the tax office, explian the situation and ask them to swap your PAYE code numbers around.

Answer 5

quit one