2nd income - tax percentage?
Discussion
Not sure whether this should be in finance.. but could be applicable here.
I'm about to start a second job for some additional income. Previously I was doing this cash in hand (tut tut) but now the people I will be working for want to play it safe, so I'll be subject to tax etc.
Is there an increased amount of tax percentage on second income, or does it all come together and so long as you are below the ~£38k threshold it will be taxed at 22%?
I'm about to start a second job for some additional income. Previously I was doing this cash in hand (tut tut) but now the people I will be working for want to play it safe, so I'll be subject to tax etc.
Is there an increased amount of tax percentage on second income, or does it all come together and so long as you are below the ~£38k threshold it will be taxed at 22%?
If you're going to be self-employed tell your tax office (call the Newly Self-employed helpline on 0845 9154 515), you'll then start paying self-employed persons National Insurance Contributions (class 2 NICS- see http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Ta... flat rate £2.40 per week, you'll then pay Class 4 NICS based on your profit (if any), then of course income tax at your marginal rate (so 20% up to £34,000 for 2008/09 rising to £37,400 from 09/10 which appears unusually generous, but who cares) and this is of course on top of your basic allowance (min 6k so you have to earn a total of over 43k to start paying higher rate tax this year).
Thanks to Class 2 NICS you are (very) slightly out of pocket with the two, but if you're simply employed & your "other" job can deduct income tax at source (so 2 x PAYE's) then the allowances both stand.
Thanks to Class 2 NICS you are (very) slightly out of pocket with the two, but if you're simply employed & your "other" job can deduct income tax at source (so 2 x PAYE's) then the allowances both stand.
In that case they should just deduct income tax (& NICS) at source. There is no "penalty" tax for having 2 jobs.
Depending on how complex your tax affairs are HRMC might want you to fill in a tax return, but if you're a reasonable way under the threshold with both jobs all it shuold mean for you is 2 payslips each month & 2 P60's at the end of the year.
Depending on how complex your tax affairs are HRMC might want you to fill in a tax return, but if you're a reasonable way under the threshold with both jobs all it shuold mean for you is 2 payslips each month & 2 P60's at the end of the year.
3sixty said:
Yeah, I'll be comfortably below the threshold. So no other tax then, just my usual percentage on my total income. Thanks for the help.
If your weekly/monthly earnings are above the NI Lower earnings Limits, you will also be subject to Class i national Insurance deductions.My weekly earnings will be above £95, which it says is the lower earnings limit but is way below the upper earnings limit per week.
So how much will I need to be paying in tax and NI? Getting slightly confused with the HMRC website info. Its only a few days a week, I'd be earning no more than say £135 a week.
So how much will I need to be paying in tax and NI? Getting slightly confused with the HMRC website info. Its only a few days a week, I'd be earning no more than say £135 a week.
Edited by 3sixty on Tuesday 12th May 09:13
Tax will be at Basic Rate (20%). Therefore, tax payable will be £27.00 (£135.00 x 20%)
NI is charged at 11% on earnings over £110 per week. Therefore your Class 1 NI will be £2.75 (£135.00-£110.00 x 11%).
The total deductions will be £29.75 (Tax £27.00 NI £2.75) leaving you with a net salary of £105.25.
NI is charged at 11% on earnings over £110 per week. Therefore your Class 1 NI will be £2.75 (£135.00-£110.00 x 11%).
The total deductions will be £29.75 (Tax £27.00 NI £2.75) leaving you with a net salary of £105.25.
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