Tax question: second job

[lilacrosa]

Would really appreciate some advice.

I earn just over 50k (single parent, two kids) and am really struggling to stay afloat with mortgage, bills, food and various clubs to pay for for the kids.

I need some extra money which could help me with food shopping and saving for Christmas.

If I did some hours on a weekend job such as bar work, will I be hammered for tax to the point I'll be earning hardly anything? I just need a couple of hundred extra a month. There is no option of overtime/pay rise in my current role.

Thank you for any advice.

Well you'll probably get most of it taxed at 40% (can't remember exact threshold) plus 11/12% NI knocked off so you'll keep about 45% of it

Wow. Thank you for your reply, I hadn't realised it would be that much. So I'd be working for 4.50 per hour on 10quid...I suppose needs must at the moment though.

You will have used your whole tax free allowance and your whole base rate bit on your msin employment. So you' pay 40% tax on all the earnings. I think.

I actually think NI is only if you earn a certain amount a week per job so you might not pay NI. It depends how much you earn a week

I also think 40% but if you did extra hours in your first job it would still be 40% as you are now in that banding, also it might be worth taking measures like putting a bit more into your pension to get the full child benefit if you haven't already.

Thanks for your responses - just realised child benefit will also be affected. I have only been earning this amount for 18 months after a big pay increase and honestly did not expect to be in the position where I am still feeling so stretched and struggling at the end of the month.

I know lots of people have it way harder though so just trying to stay positive and if I have to work for 4.50 an hour at the weekend so be it - that's the kids' school meals for a day taken care of (almost!)

I would look at your existing budget before working extra weekend hours. Yes you will earn some extra money - but is it worth the non monetary things you will lose such as time with your family and simple
downtime to recharge and time for household chores etc? Plus it really knackers you healthwise and it’s a pain trying to match two jobs with holiday time - even if you aren’t going anywhere.

You could see if you could get some freelance work where you are self employed and invoice who you work for rather than paye as you are allowed to earn £1,000 a year in addition to your paye job without notifying Hmrc or paying tax and ni.

It's not quite as high as that as NI reduces to 2% for higher rate tax payers. The 40% is also after pension contributions so if you're paying into an employer pension scheme you can take that into account.

However, if you have student loan repayments, you need to take these into account, along with any loss in child benefit.

The suggestion to do a small amount of freelance work so it is untaxed is a good one. Even something like cleaning or babysitting?

The other option is a really good review of your finances to see if you can reduce or cut out any costs and free up disposable income that way?

Look at the Moneysavingexpert budgeting advice for ideas. If you can shave a bit off what you pay for mobiles, broadband etc and cut out unnecessary subscriptions you'll have more spare money.

Not really what you asked, but it's possible you might have entitlement to a little bit of universal credit. People on higher earning often just assume they can't get it, but there's no earnings cut off. Use turn2us website to check if you'd be able to get any

The NI on the 2nd job will be worked out separately from the 1st one so will have all the allowances again. They don't combine the NI amounts. You will pay tax at the higher rate possibly as these are added together.
Also starts getting into the child benefit zone.

I think this is the worst place to be earning wise, as you start paying higher rate tax, your CB starts going down. But the exact sums will depend on the figures you earn.

Honestly op...I'd be looking for cash in hand work.

Plenty of smaller pubs will offer it, for obvious reasons. Same with takeaway delivery (as in approach an independent takeaway directly, not JustEat or Domino's etc). Decentish money to be earned in delivering.

Thanks again for your replies, all so helpful. In truth, I have accumulated debt on credit cards/overdraft which is a major factor in me wanting the extra work so I can clear them. Once they are gone,I think my salary in my first job will be enough, it's just the monthly repayments of these debts mean I have hardly any money for other things.

I'll look into the freelance option, as an extra £1000 would be a real help.

If you are just over £50 have you lost your child benefits? If so can you find a way of dropping below the threshold so you get that back and then get cash in hand jobs -cleaning/babysitting/dog sitting etc

Can you consolidate your debts? May be able to find a lower interest rate.

Are you getting CSM? Is it worth chasing that up?

Whilst I can’t speak to your tax situation, check your employment contract carefully as some have clauses preventing you from having a second job or requiring you to get permission from management to take on a second job.