I currently work 37.5 hours per week. I would like to start doing some bank shifts. My current earnings are 21,000 per year.
So if I was to do an extra 12 hours per week or month would that then alter any deductions or make my tax payments higher as it would count as a second job. Also if I only did one per month would that be better? Is there a limit or rules about second job taxes?
I work on the bank as well as having a full time job.
I had to phone HMRC and let them know I had a 2nd job. I get my tax allowance on my full time job and 20% deducted from my 2nd job. As a result I only work Sundays as it's double time and not really worth my while to work at normal rate then have 20% deducted.
So you'll be 'using' all of your tax allowance in your full time position, currently around £12,000. Anything you earn over this gets taxed at 20% whether in your first job or second job until you earn into the higher tax bracket then the percentage is 40%, but only on earnings over £50,000.
You would be taxed on everything you earn in your second job basically but it's not like paying more tax because its a second job, more that we pay tax on anything over the tax allowance threshold.
That's not how tax works ... yes you will pay more tax because you earn more money but at the same marginal rate. Your second job will be on the tax code BR which means it is taxed at 20% your main job will not be affected. You probably won't reach the threshold for ni or pension on your second job
Are you doing it through the same employer/payroll? I do 12 or 15 hours a month extra on bank and it makes no difference, the tax code on both payslips is the same. I have colleagues who work a lot of bank - it should only make a difference if you total earnings exceed £50,000 - some have to stop for a few months.