Paying tax on how much??

[havenobrain]

I work 4.5 hours a week and earn £9.75 per hour.
I am starting a new job soon. I will be working 15 hours a week and will be paid £8.00 per hour.
I would like to work both jobs.
Will I start to pay tax on these jobs?
If so how much?
Iv not worked for a long time so not too sure how things are now.
Will it be worth working my 4.5 hour job anymore?

Personal allowance is currently £6,745 I think but will be going up in April to something over £7,000. Possibly about £7,400.

You would be earning £2,281.50 at most on first job and £6,240 on the second which would mean you would be paying tax. But as you would be working more than 16 hours a week I think that could mean you would be eligable for working tax credits, depending on the income from someone else in your household.

There are benefits checker websites (names have escaped me for the moment) which would give you a better idea.

I got the figures slightly wrong - personal allowance currently £6,475 and going up to £7,475 in April. There would also be national insurance to pay as well.

I just used a salary checker website and from April you would pay about £30 a month tax and ni and get about £680 a month. That is assuming you worked every week (not sure how holidays would be paid or not for you.)

www.mranchovy.com/calc will give you an indication of tax on salary. Problem though is that it won't do two separate calculations.

Your £8 per hour job does not attract Income tax as it would be under your personal allowance. However combined with your other job, it does then become taxable.

Job1: £2288
Job2: £6257
Total: £8546

Usual tax code from April 2011 is 747L so £7470 of income tax free earnings. So £8546 is over that amount, so you pay income tax on the amount over the personal allowance. I think income tax will be around £220 a year. National Insurance is also payable, around £320.

So taxes come to around £540 a year. So by doing both jobs, you will still be better off than only doing Job 2.

Both Employers will need to operate PAYE. Does employer 1 already do that (ie. are they quite a big employer, rather than a very small employer)

Yep, £7475 forgot the £5.

Omg. Thankyou VERY much.
My 1st job is a big company yes.

Can I fill in a couple of gaps...

When you start your second job you will be put on the BR tax code which means that tax will be deducted at 20% from all of your pay - you will only take home £96 a week. But that is obviously more tax than you will owe (which is as Nick says less than £220 a year), so you will need to use the information on this page to talk to HMRC to get it sorted out.

You probably want to have a tax code of 230T for your current job and 517L in your new job assuming it starts after 6 April.

Employer 1 does NOT have to operate PAYE, so HMRC might be reluctant to agree to this (they only normally agree split tax codes if both employers operate PAYE for you), but if they are a large company as you say then they might go for it.

There won't be any NI to pay as you can earn £139 a week in each job before you pay NI.

Thats the tax bit out of the way for now, turning to Working Tax Credit - yes as LawrieMarlow says, 16 hours is the minimum for this so if you can get WTC, definately keep the original job!

Hi , i’m 17 years old currently earning 4.20 an hour on my first job and i am on income support. If possbike , could any one tell me why i am being taxed

@Sleep2001 Hard to know, it should show you on your payslip.

Most likely reason for Income Tax being deducted is an incorrect tax code. Look at the tax code shown on the payslip and contact HMRC if you feel the code is wrong -for example you have BR tax code when it is your ONlY income.

The tax personal allowance is over £11,000 despite what is said above.
However you start paying national insurance at more like £7500 a year and NI is worked out on each employment so probably jusr have a tiny bit of it to be paid on the higher earnings job.

As said above if people have tax taken off they can claim it back from HMRC by making an application to have it paid back to them.

2011 ZOMBIE THREAD
Personal allowance for 18/19 is £11850
NI limit is now £8372 on any one job

2011 ZOMBIE THREAD