Paying tax on a part time job after a full time job

[typerob]

I'm coming to the end of a year long business placement (best decision you will ever make if your a business student!) and having earned around 15k p.a I am now over personal allowance for the year.

The company I am with has asked me to stay on in a part time role, working 15 hours per week. If I accept this will I be shafted by the tax man who will continue to take 20% of my £450 a month pay check?

Due to a fair commute and the fact that those 15 hours will be flat out, I may have to turn the offer down.

travelling a total of 120-180 miles a week and working 15 hours for around £100 per week seems quite pointless.

Any advice as to if I will continue to pay tax would be hugely appreciated!

[russ_a]

I thought the PA is around 6k so with only £450 a month you wont pay any tax just NI.

[ewenm]

Wasn't most of that £15k in the previous financial year? So this FY you've still got some allowance left?

[typerob]

my gross taxable is currently at 5k for the financial year, so by the end of September (full time contract ends) I will be near the top/over personal allowance for this Financial year.

I guess this means I will be taxed on my £450...

[ewenm]

typerob said:

my gross taxable is currently at 5k for the financial year, so by the end of September (full time contract ends) I will be near the top/over personal allowance for this Financial year.

I guess this means I will be taxed on my £450...

in that case, yes you will. However it sounds like it shouldn't be a purely financial decision - if this company is one you might want to work at when you graduate being there part-time already could mean you'd be almost guaranteed a full-time job again later.

Of course, that may not be the case. Is there any negotiation room on the pay rates?

[typerob]

That is the main reason i'm considering the offer, if not I would walk away.

I suspect the salary negotiation is the way forward. I just don't want to shoot myself in the foot if they say no!

[trix-a-belle]

Rob

the tax paid on your payslip is based on the frequency you are working continuing for the whole tax year, if that frequency changes & you earn less the tax office redress the balance so you will only ever pay tax on what you will be earning over your personal allowance. so you may pay less tax/no tax or get a tax rebate on a payslip (if you stop work completely till the end of the tax year then you would have to contact the tax office to arrange the tax rebate)
are you still with me?

so in your case your salary is 15k per annum (full time hours), between the beginning of the tax year & the end of september you were paying tax based on being full time for the whole year (£142.08/month = £1704.96/year)
from the end of september you go part time and between then to the end of the tax year you earn £3500 (for arguements sake) making £12250 total for the year
so you would actually have needed to pay tax of £1155 for the whole year

you would have paid £852.48 tax by the end of september therefore will only pay £302.52 tax for the rest of the year (cira £50.42/month due to the rebalance)

hope you follow that

S

see http://listentotaxman.com/index.php
http://www.nidirect.gov.uk/index/information-and-s...
http://www.nidirect.gov.uk/index/information-and-s...

[C O Jones]

Try to get it so you work two days/week @ 7.5 hours - rather than 5 @ 3 hours, this will cut down on the commuting time and cost.

It will also give you time to look for another similar part-time job locally to boost your income.

Russ

[ewenm]

C O Jones said:

Try to get it so you work two days/week @ 7.5 hours - rather than 5 @ 3 hours, this will cut down on the commuting time and cost.

It will also give you time to look for another similar part-time job locally to boost your income.

Russ

I think the OP needs to fit in completing a business degree too