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What tax should I be paying on a second job

(6 Posts)
crazedupmom Sat 01-Nov-08 13:33:59

Hi
Have recently just started a second job to make a bit of additional income.
I have just been paid for the first time from this second job and my gross pay was £200 and I have paid £40 tax out of it.
Thye have given me a tax code of BR.
does anybody know if this is correct is this an emergency tax code or is this tax code permanent and is the amount they have deducted correct.
I do obviously have a main job as well where I don,t really earn enough to pay much tax so will that remain the same.
Sorry this is the first time I have ever worked two jobs so I am unsure.
I didn,t have a p45 to give for this second job so I provided them with a p46.

DoNotAttempttoblowupparliament Sat 01-Nov-08 13:37:44

Sounds like this tax code is permanent. It is because you have to pay tax on the entire earnings with the second employer. You do get any tax free pay.

BR
This code is an abbreviation of "Basic Rate". It is applied by HMRC to employees who are liable to pay income tax at the basic rate, i.e. 20%. You may be given this tax code if you have two jobs - in one of the jobs you have a suffix code so that you receive your "tax-free pay"; in the other you must pay tax at 20% on all of the earnings. If you have two pensions, the state pension and an occupational pension, this code may be used to deduct tax from your occupational pension.

Your employer is also allowed to allocate this code for new employees in certain circumstances if HMRC has not yet provided an official tax code.

If you have this code, your employer is required to deduct tax at 20% from all of your earnings. You do not have any "tax-free pay".

IdrisTheDragon Sat 01-Nov-08 13:39:05

It depends how much you are earning from the first job. If it is more than the personal allowance (about £6k AFAIK) then you will be taxed at the basic rate on everything you earn from the second job, so the BR code is right.

crazedupmom Sat 01-Nov-08 13:41:21

I don,t always earn enough to pay tax on my first job but on occasions I do have to pay a very small amount as my wages can vary a little from month to month on this job

AuntieMaggie Sat 01-Nov-08 13:42:15

make sure you are being taxed right on the second job - my second employers a few years ago messed up and i am now "paying back" my underpaid tax.

Idris is right - if you are aboove the 6k on your first job and claiming the allowance onthe first job, you get taxed about 20% on the second.

DoNotAttempttoblowupparliament Sat 01-Nov-08 14:02:35

But it is employers that deduct the tax and send to Tax office. They don;t know what you are earning with the other, so 1 job has to assume that you are using all of your tax allowance with the other; hence the BR tax code.

The tax office will check at the end of the year what you have paid and give you a rebate for the tax that you have overpaid. As far as the PAYE system is concerned though one of your 2 jobs will have to have hte BR tax code I suspect.

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