Anyone work in HR/knowledgeable about tax/second job?

[CMSnightmare]

I have one job that is low paid but enough to be taxed. I have a pension so obviously each month NI and paye and pension are deducted. I’m basically trying to get a second part time job (will still be a low earner) but I think this person that I have in mind (we had a brief chat before Xmas and will be meeting this week) will want me to be self employed which I don’t want to do. Everyone else that works for them is self employed. If they employed me it will cost them won’t it? What happens with a second job and tax and paye etc?

Bumping

The other people who work for the company, is it their only place of employment do you know ?

F

Its not complicated to have one employment and one self employed income. You would need to decide which of the two takes your nil rate band (you’d want to claim that for your self employment but it would end up costing your current employer more). The difference between self employment and employment is more than just tax though - you’d have no statutory entitlement to eg sick pay / holiday pay / security from dismissal and pension contributions etc, so self employed rates should be substantially higher to take that (& tax / nic) into account. calling you self employed if you have to turn up at a set place / times and perform set tasks is unlikely to meet the criteria for genuine self employment, and it may be that they are trying to get staff on the cheap.

Tax and paye will be the same as in your current job. Earnings over personal allowance taxed, NI is applied per job so you have a threshold for each job. Employer threshold is c £8,840 pa so if you are earning less than that there is no NI for e’er (and small e’rs have a £4,000 allowance anyway). E’er only has to make pension contributions if e’es earn over c£6,240.

If you were on payroll they would have to give you paid holiday, then there is the admin cost of running payroll. But check HMRC’s employment status checker because e’ers aren’t supposed to get around their responsibilities by saying you have to be self employed if otherwise you would have an employed status. See www.gov.uk/guidance/check-employment-status-for-tax

You can’t use your nil rate band for self employment-you’d have to do a tax return and pay any tax and NI due then, plus if earnings were high enough you would have to do payments on account. But nil rate band or not, the extra cost of running payroll to the e’er is in the e’ers NI and pension, holiday pay, any statutory pay and admin.

Sorry my question might have been vague. I won’t take a second job on as self employed. I will stay employed, what I was trying to ask was the costs of the second job to the employer. I will have to pay 20% on my second job (I rang hmrc) I just didn’t know how it worked but they said second employer have to still pay my NI etc so I don’t think they will want to take me on

Yes, they would have to pay employer’s NI if your salary goes over £736.67 in a month (although as I said this would probably be covered by the £4,000 employment allowance), pension and paid holiday, plus the admin costs of running payroll.

I have 3 jobs. Tax allowance is on the main one, so after the allowance i pay tax on everything else at 20%. For the other two jobs my tax code is BR so automatically 20% tax. You will find ,if you meet the threshold ,you will also pay NI on the second job, as will your employer ( my other two jobs are very part time and don’t meet the NI threshold for each job), and don’t forget if you meet the pension threshold you will either need to pay that contribution on your second job, as would your employer unless you opt out