Implications of taking on a second job

sheriffwoody

Distinguished Member
Does anyone know what the implications are of taking on a second job?

By this i mean - will the tax on my main job increase and therefore take home less each month? or will it just affect the amount i take home from the second job?

I am trying to work out if taking a second job will actually be detrimental to my earnings or not.
 

Toasty

Distinguished Member
Will depend on your earnings and other circumstances, but assuming 20% band under PAYE, your main job will have a tax code that takes into account your personal allowance. Your second job will use a code for the full 20%.
 

DarenD

Well-known Member
2nd job will have a BR tax code applied from the start where as your main job will have your allowance code.
 

sheriffwoody

Distinguished Member
If i take on a second job, will my earnings from my first job be affected at all?

will i continue to earn "x" with my main job and then what ever the second job is paying - or is it likely that my main job will be effected and i will earn less?

with my main job and the additional job i shouldn't go over the 20% tax limit, because of the £10k personal allowance.
 

Toasty

Distinguished Member
It should stay the same, but if you do flirt with the 40% bracket, any adjustments may affect your main jobs tax code. For example, if you do need to pay more tax, they will adjust your tax code accordingly. If things get more complicated, you may be asked to do self assessment.
 

nheather

Distinguished Member
If i take on a second job, will my earnings from my first job be affected at all?

will i continue to earn "x" with my main job and then what ever the second job is paying - or is it likely that my main job will be effected and i will earn less?

with my main job and the additional job i shouldn't go over the 20% tax limit, because of the £10k personal allowance.
No as far as being paid they will be treated independently. The first job will keep its tax code so will have the personal allowance and you will be paid the same as you are now.

The second job will have a tax code which excludes the personal allowance so will be taxed at 20% from the start.

The extra bit is that you may need to consider submitting a tax return at teh end of the year to compare the two.

For example, the two jobs may be below the 40% threshold individually so you will only get taxed at 20%. But together they might exceed the 40% threshold which means that you owe HMRC some tax.

Cheers,

Nigel
 

koeman

Well-known Member
You would also normally have to inform your full time employer about the 2nd job. I know we do not allow second jobs here
 

sheriffwoody

Distinguished Member
This is from a money advice service website:
  • what you earn from both your jobs makes you a higher-rate tax payer, but tax is deducted from your second job at the basic rate

Currently the 40% tax charge applies to wages of £31,786 and above, but because the current tax free allowance is £10,600 you can earn up to £42,385 a year before paying 40% tax, correct?

so as long as my earnings, with the second job, stay below £42,385 a year (which they will) i should be fine and i will just pay the full 20% tax on all of my second job earnings - which would be fine.
 

imightbewrong

Distinguished Member
I am trying to work out if taking a second job will actually be detrimental to my earnings or not.
The thing to remember about tax is the number of jobs you have is ultimately irrelevant. If you earn £30k a year you will pay tax calculated on that whether you have one job or ten.

It may be that you pay the 'wrong' amount of tax each month, but you will pay HMRC or claim some back at the end of the year to make you even. This can sometimes be done with just a phone call/letter, you don't necessarily need to go full Self Assessment.

Take a look at a site like SalaryCalculator to work out how much extra your take home would be.
 

imightbewrong

Distinguished Member
I know we do not allow second jobs here
Doesn't sound legal, unless you mean they have the right to refuse in the case of conflict of interest or concerns on the number of hours worked.
 

weaponx031277

Well-known Member
You would also normally have to inform your full time employer about the 2nd job. I know we do not allow second jobs here
^ This ^

I know my employer dosen't allow you to have a second job and its on our contract just to back it up. Bit of a pain as a pub down the road from me is looking for two evening shifts in the week and i could really do with the extra cash.
 

imightbewrong

Distinguished Member
^ This ^

I know my employer dosen't allow you to have a second job and its on our contract just to back it up. Bit of a pain as a pub down the road from me is looking for two evening shifts in the week and i could really do with the extra cash.
If you want this second job I would check it out - your employer doesn't have that much control over your spare time. Remember things in a contract still have to be 'legal' to be valid.
 

koeman

Well-known Member
What if you injured yourself in your second job, would you expect sick pay from your main job? What if they were working so many hours it was affecting their ability to do job 1? If it's in your contract then at least speak to hr about it or face disciplinary for breach of contract.
 

imightbewrong

Distinguished Member
What if you injured yourself in your second job, would you expect sick pay from your main job? What if they were working so many hours it was affecting their ability to do job 1? If it's in your contract then at least speak to hr about it or face disciplinary for breach of contract.
Both (all) employers have a duty to ensure no one is working more than 48 hours per week on average across jobs (although I failed that on a single job - expect many do :) ).

Sick pay - you will get the statutory amount - plus anything else the contract entitles you to.

Yes talk to HR, but first carefully read the contract to see what it says - if it is just a blanket 'You may work for no one else' then that is dodgy legal ground IMO. If it says 'we have the right to disallow your second job due to hours/conflict of interest etc' then that is more reasonable.

You think about all these board members - most of them work for umpteen companies. At my last place plenty of people had things on the side - one even ran a business from his office (with employer knowledge) until he quit his job to do that full time :)

It does depend on the job though - when I used to work at the MOD some of the guys there when they left had to submit every job application to the MOD for ten years for approval, to give them the right to say no if they thought 'sensitive information' was heading towards the wrong companies :)
 

nheather

Distinguished Member
This is from a money advice service website:
  • what you earn from both your jobs makes you a higher-rate tax payer, but tax is deducted from your second job at the basic rate

Currently the 40% tax charge applies to wages of £31,786 and above, but because the current tax free allowance is £10,600 you can earn up to £42,385 a year before paying 40% tax, correct?

so as long as my earnings, with the second job, stay below £42,385 a year (which they will) i should be fine and i will just pay the full 20% tax on all of my second job earnings - which would be fine.

The other thing to be aware of - if you do earn above £42,385 then you will have paid too much NI so will need to get a rebate.

Cheers,

Nigel
 

weaponx031277

Well-known Member
If you want this second job I would check it out - your employer doesn't have that much control over your spare time. Remember things in a contract still have to be 'legal' to be valid.
It actually states in my contract you cannot take a second job. Think is alot of that is for the possibility of me getting called in in emergencies or if theres problems.
 

imightbewrong

Distinguished Member
It actually states in my contract you cannot take a second job. Think is alot of that is for the possibility of me getting called in in emergencies or if theres problems.
Sounds iffy. Is there not organised emergency cover/rota?
 

SteveCritten

Distinguished Member
What if you injured yourself in your second job, would you expect sick pay from your main job? What if they were working so many hours it was affecting their ability to do job 1? If it's in your contract then at least speak to hr about it or face disciplinary for breach of contract.
You can get insurance for this.
 

SteveCritten

Distinguished Member
It actually states in my contract you cannot take a second job. Think is alot of that is for the possibility of me getting called in in emergencies or if theres problems.
You cannot sign away your civil rights and it is your right to take a 2nd job. So long as it doesn't affect your primary job why would it matter.
 

imightbewrong

Distinguished Member
Indeed. If you think about it, if you are expected to be called in at any time in 'emergencies' then how do you go to the cinema/football match/away for the weekend/get drunk! Working four hours on a Saturday morning doing gardening/supermarket bleeping/fun run marshalling doesn't impact your employer in any way.
 

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