2 jobs and tax

[Donut22]

I'm a single parent working two low income jobs
1st job 400 4weekly
2nd job 500 4 weekly

Can anyone help with what I should pay tax wise? I was talking to someone today and they mentioned I shouldn't have to pay tax because my wage is low? Buy I have no idea 😅

Anyone 🙃

Are they runningbPAYE at the jobs? If so it will be automatically calculated via your tax code.

If not PAYE you should do a Self Assessment.

If you earn less than around £12,500 per year then you don't pay tax.

Call HMRC and you can divide your tax allowance into two pots. They can also reverse tax and give the money back when your next payslip is generated. At least that is what happens to me. It was simple and straightforward.

Are these payment amounts before or after tax?
Are you paid PAYE (tax deducted) or not?

I doubt you’d pay tax on that amount, just a bare modicum of national insurance. Years ago I earned around that and I think my tax and NI were like £14!

The total amount from both jobs would put you under your personal allowance if this is gross pay.

If PAYE check your tax codes and contact HMRC to explain that you would like your tax code splitting between the two jobs.

My 2nd job I get taxed on so I earn 500 but after tax I'm left with 440. I know I'm paying tax but wasn't sure if it was right/wrong who to call etc

Are you sure it's tax? That might be your national insurance contributions.

Defo tax

What are your tax codes being used by both jobs? You need to call HMRC and let them know your expected annual earnings from both jobs and that you want to split your tax allowance between them. They'll send your employers updated tax codes.

Telephone HMRC and tell them how much you predict you’ll earn in each job and they will adjust your tax code for each job so you don’t pay tax. They’ll also refund the tax paid

Looks like you'll be getting this tax back.

Have a look at your payslips, you need to look for your tax code.

Often second jobs are taxed at BR, which is 'basic rate' and does not take into account your personal allowance.

https://www.gov.uk/tax-codes/what-your-tax-code-means

Yes exactly this. I have a second job, and it's the sort of work where they presume it's your second job, so they automatically apply the basic rate of tax. I agree your best bet is to ring HMRC to inform them you're working two jobs. Then the tax can be calculated correctly now, rather than needing to wait until the end of the tax year for a refund.

There's a good chance they've split your tax code in an odd way. When I started a new job but kept working my old job pt they assigned my whole personal allowance to the pt job where I worked maybe 1 day a week at most and would never be liable for tax. On my new 'main' job I was getting taxed on everything I earned and they'd put me on an emergency tax code so I think they were taking around 40% off me. I'd filled out forms with my new employer AND called them in advance hoping they wouldn't mess it up as I was the sole breadwinner for a family of 4 at that point and couldn't afford any mistakes. So I was a bit snnoyed when I only received about £700 for my first pay.

I called HMRC and got it sorted, but it took them a month or 2 to actually change it, then I didn't get the tax I'd actually paid back until October of the next year. This happened in May 2019 and I actually received the money back in October 2020 as a tax rebate. I think they were abnormally slow to process rebates that year due to covid.

Tbh public sector employees can be pretty slow and useless, and departments NEVER communicate with each other. If I behaved that way in any of my jobs I'd be fired. I don't really blame the employees themselves, its mostly inefficient and outdated systems that are the issue I believe.

Your tax free allowance is £12,500 per year so assuming your annual gross pay is less than this you won't pay any tax.

how long have you had two jobs?

Just phone HMRC and ask them to split your tax code between the 2 jobs. It's do easy.

In all likelihood you'll pay £0 tax on you first job as your tax code will be 1257L and you fall below the threshold to pay tax.

The reason you'll be paying tax on your second job income is because they're likely to have you on a BR tax code so you pay tax at 20%.

This isn't an issue because at the end of the year HMRC will reconcile your total earnings and if they're below £12,570, you'll get a tax refund for the tax you've overpaid on your second job.

Alternatively, you have the option to contact HMRC mid year and ask them to change your tax code with both jobs, so you essentially split your personal allowance in half and don't pay any tax on either.

What tax code are they using? Some of your allowance will be used by first job with tax code ie. 1257 but the second should have code adjusted to allow for the income from first. Overall you are not due to pay tax but if you have had any deductions they can be reclaimed.

You always end up paying more tax when you’ve got 2 jobs, but if earn under £12,500 per year in total you’ll get a tax rebate

I don't think this is true? You'll just get a tax rebate when they calculate how much you earnt and how much tax you paid after the tax year

Yeah. Thats not true. Whats the logic of that statement?

No you won't. You will pay the exact same amount of tax per year irrespective of how many jpbs you have. You can earn £30000 in one job or 3 jobs at £10000 and amount of TAX you pay per yaer would be the same