Does anyone know the rules on taking a second job whilst employed?

[Raaaaar]

Been wondering for a while how I could make a bit extra alongside my day job. This weekend I’ve seen a post from a charity who want a social media manager on a freelance/self employed basis, for ad hoc work. It’s loosely similar to my day job in the skills it requires. The values of the charity suit me down to the ground and it’s something I’m really passionate about.

I work in local government Mon-Fri 9-5 but have evenings and weekends spare.

Do most organisations allow you to take a second job? Could my current workplace prevent me from doing it? Would I need to tell them about it? How would it work tax wise?

Grateful if anyone has done similar to the above or can give any pointers.

Is there a tax thing where you pay more for a second job? I heard so not sure if true or not

It depends on your contact so I’d start there. Or perhaps company handbook.

HMRC will adjust your tax code. You might end up overpaying NICs but they can be reclaimed.

It will depend on your contract but most contracts will say it’s not allowed. In reality, if you don’t tell them, they probably won’t find out.

i have also worked in local government and a colleague ran a small business as a beautician in her spare time, she was open about it and no one really minded.

Nobody here knows what your employer's policy says!
I would imagine the charity would want a freelancer who's available in office hours.

usually it's if there is a conflict of interest.
i.e. if I work in Asda then Asda don't want me working in Aldi as well, but wouldn't mind at all if I worked in the local library.

Most government/local government organisations you will need to fill in a form and get approval. For example I work in the justice sector, I have team members who have second jobs one is a dog agility trainer, one works in a restaurant, one is a wedding/event photographer. The only one I ever had to turn down was when I worked in probation and a probation officer wanted a second job as a nightclub bouncer. Conflict of interest, and potential damage to organisational reputation. You can't have a probation officer dragging people out of clubs, physically restraining people or getting into altercations etc.

You should check your contract for whether you need permission for a second job.

If both are employed positions, you tell job number 2 you have other employment too and your tax code should get adjusted to reflect that. It can be easier to contact HMRC as you start job 2 so it's right from the beginning.

Unless your contract prohibits it ( and there are rules around what they are allowed to prohibit as long as no conflict of interests) then you can do it.I don't think it us usual fir second jobs to be prohibited, you just have to choose which us your main job for hmrc

Check your contact it may say you can't work elsewhere. But you can probably do it anyway. It's mainly about not working for a competitor

I used to always have one job I was employed at and then self employed around it. You will need to register for self assessment tax returns and your tax free allowance gets used up on your main job so you pay tax on your full self employed earnings but only what you would pay if you earnt that in your employment wage if that makes sense.

Your employer will have a policy on this. I guess they'll be looking for any conflict of interest. Look at your contract and speak to your Manager.

Ask your employer. It should be fine but definitely ask. I earn about 5-10K per year in my second job and for tax on the second Job I do a self assessment every year and pay my tax bill by January 31st.

I paid an online tax accountant to figure out the amount. Just keep a good record of your income and any expenses.

I work in local government and have a second job. I filled a form in and my service director gave me the ok. There’s no conflict and the second job has no impact on my main role.

For tax purposes I pay the standard rate as my total income is less than £50k. My second employment tax code is BR which means I pay tax on all earnings as my allowance is allocated to my main role. I don’t know the impact if your earnings are below the tax allowance or into the higher rate.

There is no law that prevents you from taking a second job during your free time.

The only issue you would have is if you take a job doing the same thing for a competitor.

HMRC will adjust your tax.

Slightly different I know but I am a freelancer as well as having a part-time job in a completely different area of work. I made it clear at the interview stage that I would continue my self-employed activities.

Just declare it to your Manager.

This isn't covered by law, it will be dealt with via clauses in your employment contract.

Generally if the second job isn't in competition for the firm you work for, you won't use any company resources for it and it will not interfere with your ability to perform your own job (i.e. you won't be coming into work on the back of an 8 hour night shift) then most companies would not reasonably object.

Check your contract and employee handbook/policies to check on your companies stance and expectations.

I took a second job whilst working for a local authority. I sought permission from both the local authority and the second employer and they provided in writing that they were happy with the arrangement.
Also worked freelance at the same time as working for a local authority in a "day job". Just sought permission, got it in writing. No worries 👍

As well as the tax issue, which is generally dealt with by your main employer using your personal allowance and the other employer using a BR (all at 20%), D0 (40%) or D1 (45%) tax code be aware of the risk of paying too much NI. If you earn more than, I think, £1,200 a week you can apply to have the NI deferred on the second job so that you only pay the not the 10% rate. You lll need to fill in form CA72A

https://www.gov.uk/government/publications/national-insurance-application-for-deferment-of-payment-of-class-1-national-insurance-contributions-ca72a

You will get your tax allowance on your first job. Your second job will be basic rate tax.

Only if your second job doesn’t take you into the 40/45% tax bracket. What HMRC will do if the second job isn’t all in the 40/45% bracket is tax it at 20%/40%, and reduce the tax free amount on your main job to (attempt) to make sure that in total you pay the right amount of tax. But, if your earnings fluctuate month on month it’s unlikely to be exactly right and you might need to call/write to them at the end of the tax year to true it up.

How's it going OP?

Depends on your contract. My new job does not allow second jobs. Previous one allowed them if they were notified and it didn't interfere with your duties, and wasn't a competitor.