I am thinking of taking on two part time jobs. Both are not that well payed. Would I be penalised with paying tax etc?
2007-09-19 06:31:08 · 8 answers · asked by Louise 2 in Business & Finance ➔ Taxes ➔ United Kingdom
no, overall you will be paying the right amount of tax as it is based on total earnings for the tax year.
basically, one job will be your main job, most likely the one that pays the most. this will be given a tax code of 522L so you get your £5225 tax free amount attributed to one job and you will pay less tax on this one.
the second job will have a tax code of BR, this means the second job will be taxed at 22% on all earnings from that job.
overall you should be paying the right amount of tax.make sure your employers give you a form P46 to fill out and you can let the Inland Revenue know that you have 2 jobs using these forms so they can allocate the correct tax code.
2007-09-19 12:29:26 · answer #1 · answered by Paul S 5 · 1⤊ 0⤋
You pay tax according to your code for the year and how much you earn in the year. It makes no difference in the end how many jobs you do as at the end of the year your total earnings are added up and the tax calculated and you owe any extra or get refund for any overpaid tax. Now what it does do is to bugger up your weekly tax deductions. The first employer has your P45 and deducts according to that but the second one needs some figure from the tax office but at the start they will tax you on emergency code which is always more tax than you should really be paying. They may get it sorted out with the tax people in 2 or 3 months and they may not so it may not get sorted until the year end when you will get a tax refund.
when I did two jobs for about 15 years my tax was never straight and I always got a refund and it did not get straight until about 18 months after I had stopped doing the second job. By now they may have improved the system of course but I doubt it
2007-09-19 06:47:39 · answer #2 · answered by Maid Angela 7 · 0⤊ 0⤋
You will pay Tax on your total earnings.
Example :-
(1) One person has one job that pays 20,000 a year
(2) A second person has 2 jobs, one that pays 5,000 and one that pays 15,000 ..
Both people earn 20,000 a year
Both will pay EXACTLY the same Tax
HOWEVER it IS possible for person (2) to pay the 'wrong' amount of Tax each month and either have to pay extra (or get a refund) at the end of the Tax year.
To minimise any incorrect monthly payments, nominate you higher paying job as your 'main' job.
2007-09-19 20:20:24 · answer #3 · answered by Steve B 7 · 0⤊ 0⤋
You will have to nominate one as your main job (the one you think you will get paid more) and one as a secondary job. On your main employment you will get your full tax-free allowance but on your second job you will pay basic rate tax on all earnings. At the end of the year the inland revenue will do all the calculations and automatically pay you any overpayment of tax. In the long term you will not be penalised with paying tax but the Inland Revenue can be slow if not chased at the end of the year. Call your local Inland Revenue office if more advise is needed as they can be helpfull (Usually).
2007-09-19 07:42:51 · answer #4 · answered by eebyeck 1 · 0⤊ 1⤋
If the nursing job is very irregular, she should contact HMRC when she starts the clerical job to request that all her tax free allowances are allocated to the clerical job. This will mka ethe most of her allowances and will mean that her nursing job will be taxed at 22%. Having two jobs does not mean you pay more tax - the tax would be the same as if the income from both jobs was all earned in one job. She will also save on NIC as she will get the annual exemption (5225) against both jobs.
2016-05-18 06:55:18 · answer #5 · answered by ? 3 · 0⤊ 0⤋
They just add the earnings together and tax the sum, as if it were one job. You get a certain amount tax free (depends on your circumstances) then you pay tax on all earnings above that.
Don't let it put you off. You gotta earn it to pay it. If you are paying lots of tax, it means you are earning lots of dosh. The alternative is to stay poor to avoid paying tax. What kind of life is that?
2007-09-19 07:01:21 · answer #6 · answered by nipper 3 · 1⤊ 0⤋
It is all going to depend on your tax allowance and if the wages from the two jobs add up to more than you are allowed to earn before paying tax.
2007-09-19 06:46:04 · answer #7 · answered by thelev51 4 · 0⤊ 1⤋
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2016-09-20 22:26:11 · answer #8 · answered by Anonymous · 0⤊ 0⤋