I am about to get a second job. At the moment i am working full time for a company where i am going to reduce my hours to 18 and getting an other job with 25 hours - both jobs are on the same hourly rates plus i am just started self-employed (not significant income-yet).
Any ideas what happens to my tax code,etc? Will my main job become my part time job with BR tax code and my new job will become my main job with normal tax code?
And at the time of self-assessment i just disclose my earnings from my jobs where i used my tax allowance and payed income tax and disclose my income from self employment where i will have to pay BR tax on my earnings?
Do I still fill in P46 at my new work place even if this probably going to be my main job and I probably want them to use my normal tax code? (I still not going to have P45 as I am not leaving my old job...)
Getting confused...I really should do a payroll course soon...
Attila
-- Edited by attilabenko on Thursday 29th of April 2010 05:39:32 PM
-- Edited by attilabenko on Thursday 29th of April 2010 06:13:13 PM
One job will be your main employment and one your second employement. As long as you earn over £6500 on either job it would not really matter which one has your personal allowance applied to and which one has BR applied.
If the coding appears to be wrong or you have very low earnings in the job where your personal allowance is applied to, you can phone HM R&C and get your tax codes switched, Pretty easy to do and just takes 10 mins.
You will need to complete a p46, which will apply a BR code to your second employment.
For your tax return you will need to disclose both sets of employment income and tax deducted along with your self employed profit/loss. Any taxable loss made in the year can be set off against other income i.e. your employment income or alternativly carried fwd.
You will pay 20% tax on your SE profits up to the 40% bracket and you may be subject to Class 4 NIC dependant on profits. You will also be paying class 2 NIC unless you have applied to defer payments due to low earnings.
Hope that helps.
attilabenko wrote:
Hi everyone,
I am about to get a second job. At the moment i am working full time for a company where i am going to reduce my hours to 18 and getting an other job with 25 hours - both jobs are on the same hourly rates plus i am just started self-employed (not significant income-yet).
Any ideas what happens to my tax code,etc? Will my main job become my part time job with BR tax code and my new job will become my main job with normal tax code?
And at the time of self-assessment i just disclose my earnings from my jobs where i used my tax allowance and payed income tax and disclose my income from self employment where i will have to pay BR tax on my earnings?
Do I still fill in P46 at my new work place even if this probably going to be my main job and I probably want them to use my normal tax code? (I still not going to have P45 as I am not leaving my old job...)
Getting confused...I really should do a payroll course soon...
Attila
-- Edited by attilabenko on Thursday 29th of April 2010 05:39:32 PM
-- Edited by attilabenko on Thursday 29th of April 2010 06:13:13 PM
-- Edited by adi2402 on Thursday 29th of April 2010 06:38:16 PM
__________________
Forgive the typo's I generally do not proof read. Just lazy I guess!
I would prorably have my tax code split or get an exemption on paying ni, they will split your tax code to say 347T pne one job & 300T on another. a lot of people dont realise that with 2 jobs they pay ar too much NI contributions.
I don't think it will make any difference. The NI payments are not governed by the tax code and in actual fact there is double relief for NI in a situation like this. Splitting the tax code, however can be useful for people with two low paid jobs, ie the earnings of either job does not use the whole of the personal allowance.
thanks for the info. i think i will have to sit down and work out my earnings but at the end of the year i will have paid the same amount of tax either way. but yes there is this question about NI. am i going to pay NI twice with two jobs? and if i would not claim small earnings exemption on my self-employment would i have to pay three times? if this is the case will i get three hospital beds when i need instead of one(or none)?
thanks for the info. i think i will have to sit down and work out my earnings but at the end of the year i will have paid the same amount of tax either way. but yes there is this question about NI. am i going to pay NI twice with two jobs? and if i would not claim small earnings exemption on my self-employment would i have to pay three times? if this is the case will i get three hospital beds when i need instead of one(or none)?
Yes and if you ever need to claim JSA you will get 18 months at contribution based rather than 6 months oh and three pensions.
I got it now. If I would just have one job I would only get £110 and above that the normal 1 and 11 percent but with two jobs i get £220 so earning the same money but paying actually less NIC. Is that right? In this case it is ok... Ok one more question? what about holiday? in one place i work 3 days in the other place i work 2 days and both places has 28 days holidays for full time staff. where i do 2 days i used to do 40 hrs so i took 10 days already (holiday year starts 1st january) and now i am reducing my hours to 18. the other place i will start now holiday year starts 1st of april. would this mean that at my original workplace i would not be able to take any more holidays this year?
The minimum holiday entitlement is 5.6 weeks, so if you work 10 hours a week at one place you are entitled to (inc bank holidays) 56 hours per year. If you work 18 hours a week that employer needs to let you have 100.8 hours per year off.
