2 PAYE jobs - how would it work
Discussion
Apologies for asking here before googling, but the thought just occurred so if anyone knows the answer I'd be grateful.
I currently have a part time job, contributing tax as PAYE, in a couple of weeks I will be starting another part time job in a different part of the country, which as its the NHS will be PAYE too. Presumably the tax office will sort it all out eventially, but I guess I will be dealing with 2 different offices. Will one talk to another? I am assuming that the 2nd job will not attract any of my personal allowance as that is used on my original post.
any clues
I currently have a part time job, contributing tax as PAYE, in a couple of weeks I will be starting another part time job in a different part of the country, which as its the NHS will be PAYE too. Presumably the tax office will sort it all out eventially, but I guess I will be dealing with 2 different offices. Will one talk to another? I am assuming that the 2nd job will not attract any of my personal allowance as that is used on my original post.
any clues
Been there, done that (including 2 different tax offices) and I ended up with all my allowance on the employment that I had started first and none on the second job. When I quit the first job I sent that P60 to the second employer and everything got tidied up allowance-wise without any problems.
You decide which of the jobs is your MAIN job (usually the one paying the largest salary). All your tax allowances (usually called your PAYE Coding) will be allocated against this job. In theory you should pay the correct Income Tax on this salary under the PAYE system.
In the second job, yiou will have no allowances left to offset against this so tax will be deducted by the employer on the full salary, usually at 20% (referred to as Basic Rate - i.e. a BR PAYE Code).
Matters can get a bit complicated if the combined income from the two jobs are high enough to put you into the 40% tax band (total income exceeding £43,875 for 2009/10).
In the second job, yiou will have no allowances left to offset against this so tax will be deducted by the employer on the full salary, usually at 20% (referred to as Basic Rate - i.e. a BR PAYE Code).
Matters can get a bit complicated if the combined income from the two jobs are high enough to put you into the 40% tax band (total income exceeding £43,875 for 2009/10).
Make sure that both arties know about this.
I know of someone works for the NHS and he was drawing a pension and working at the NHS (same as two jobs) - he told the NHS when he joined, but they, evidently, ignored this. When he worked out that he'd not been paying enough tax (was getting two tax free allowances), he went to the IR and told them that he owed backdatd tax - he got royaly bummed, having to pay punitive costs.
Make sure its in line from the outset.
I know of someone works for the NHS and he was drawing a pension and working at the NHS (same as two jobs) - he told the NHS when he joined, but they, evidently, ignored this. When he worked out that he'd not been paying enough tax (was getting two tax free allowances), he went to the IR and told them that he owed backdatd tax - he got royaly bummed, having to pay punitive costs.
Make sure its in line from the outset.
Eric Mc said:
You decide which of the jobs is your MAIN job (usually the one paying the largest salary). All your tax allowances (usually called your PAYE Coding) will be allocated against this job. In theory you should pay the correct Income Tax on this salary under the PAYE system.
In the second job, yiou will have no allowances left to offset against this so tax will be deducted by the employer on the full salary, usually at 20% (referred to as Basic Rate - i.e. a BR PAYE Code).
Matters can get a bit complicated if the combined income from the two jobs are high enough to put you into the 40% tax band (total income exceeding £43,875 for 2009/10).
Thanks Eric, so things should sort themselves out if i explain to 2nd job (which is temp contract) payroll that all my allowances are taken from the original post. presumably I will contribute to pension and pay NI from 2nd post. Sounds like its probsbly worth speaking to NHS pensions dept to make sure that both sets of contributions get married up. The 6 month contract will just about tip me into the 40% bracket - how complicated does it get?In the second job, yiou will have no allowances left to offset against this so tax will be deducted by the employer on the full salary, usually at 20% (referred to as Basic Rate - i.e. a BR PAYE Code).
Matters can get a bit complicated if the combined income from the two jobs are high enough to put you into the 40% tax band (total income exceeding £43,875 for 2009/10).
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