Tax on second job

[Middleoftheroad]

I have a job - work 26 hrs (though more like 30 in reality) for around £22k.

I have seen a second, work from home job that I really fancy (not keen on current job at moment and this second may lead to other things) £10,000 for 15 hrs.

I can probaby reduce my current job to around 21 hours so more or less FT over two jobs.

Will I have to pay a higher tax on second job? Will it be 20 per cent on 10k (so take hone 8k??)

Thanks. I've checked my current contract and it does not say anything about not taking a second job (I know others at my work have).

I have two jobs that I earn roughly the same for . Together they amount to full time. I get taxed very little from one and then get taxed highly on the other, but you can ask the tax office to split your tax code between 2 jobs I think. When I started my second job I was asked by my employer which one I wanted to keep as my main job and I said the other one. My 'old ' job that I get taxed virtually nothing on is the one with a good pension and I figured that if there was more money left there after virtually no tax coming off then they would take more in pension which is what I wanted. I'm not sure it actually works like that though as perhaps pension contributions are worked out on gross pay ?

You will be taxed on all your income minus your Personal Allowance (£11500 this year, I believe). How this is split over the two jobs depends - at the moment your allowance will be applied to your 'main' job but you can call HMRC to change this if you like.

I would always keep an eye on your tax codes and check your P60s yourself anyway. HMRC are usually quite approachable and helpful if you get confused (I've asked them some very daft questions over the years).

Thanks. I guess I need to figure out if it's worth it - 20 percent on the 10k job (though secretly hoping it could grow to FT).

If you did one job at the same gross pay as the pay of two jobs combined, then your take home pay is higher with two jobs.
See picture for example. I do this sort of calculation quite frequently for nannies, thus why it says Family 1, Family 2.

The pension calculations on my example are not perfected yet, so ignore that... but the reason you get more take home pay with two jobs is due to the way that National Insurance is calculated. At present, you do not pay National Insurance on some of your income. Government is looking at changing that but has not yet done so, thus we still get that benefit. Anyone interested in possible future plans of Government with regard to National Insurance, have a read of this: www.gov.uk/government/publications/closer-alignment-of-income-tax-and-national-insurance-contributions