Just curious really.

I'm starting my second job on saturday at my parents mates pub. I already work part time at a mobile phone shop, but over the summer when i'm not at uni i'm gonna be doing some shifts, maybe 3 nights a week, at the pub. I do 15 hours per week as my contract of employment at the phone shop states, but over summer i wi be doing nearer 25. Then i' be doing 15 -20 hours per week at the pub.

How wil the tax work out for my second job? Being a student and not earning much money am i subject to the same harsh basic rate tax for a second job, even though in total i wil be doing just over average full time empoyment?

 

Ask them if they can pay you cash in hand.

No Tax problems then.

 

Will job one pay you over £6,035 in a year?

Will job one pay under £6,035 but job 2 puts you over the £6,035?

£6,035 is the basic rate limit of income you can receive before paying tax.

Theres also NI to consider. Depending on how much each job pays, you may find that your NI will be higher for job 2 because job 1 benefits from the under £110 a week limit at which NI is taken from you.

 

Yeah i am hoping for cash in hand, but they have ony just opened the pub annd my dad seems to think that they wil be doing everything by the book, for the moment anyway.

 

Job 1 (being mobile phone store) paid me over £7000 last year, however there wont be so much over time this year so i don't think i'll earn over the threshold this tax year. job one also earns me more than £110 (just) before i add any overtime or commision.

Job 2 (pub) will not earn more than £110 per week. I think i would get around 80-100 per week..Would this make it free from NI? Is it true that a second job has a much higher tax percentage?

 

No, you only pay tax on what you earn in total, so simply add up all your earnings and you will be taxed at basic rate on anything you earn OVER your allowance, which, for my lad at uni, seems to be £6470.

You therefore pay NO tax on the first £6470 in any year, and then at basic rate for every £ earned OVER that amount.

It's up to you that both employers have your correct tax code, and you should only pay NI on ONE job, if at all. Be careful here, NI is harder to claim back than income tax

 

Sorry I thought you only got one NI allowance but it is per employment. NI is calculated per employment.

Allowance is £6475 - I was looking at 08/09!

Its not that your 2nd job will be taxed at a higher rate but your 1st job will use up the allowance meaning a greater % of the 2nd job is taxable.

If your 1st job is over £110 a week then you will pay NI. If your 2nd job pays less then you won't actually pay NI - I assume you will be given an NI credit though (between £95 - £110 you don't actually pay NI but you are credited as if you have)