Are you wondering whether or nor you get taxed more on a second job in the UK?
A second job is a fantastic way of adding to your savings, paying down debt or simply expanding your education and services.
However, getting taxed on your earnings might make a second job financially unviable.
In this post, we’ll be looking at who gets taxed on a second job, how much this tax is and how to calculate it so you can determine whether a second job is right for you.
Do You Get Taxed More On A Second Job
Unfortunately, the answer to the question isn’t clean cut.
Firstly, we need to look at your total earnings. You can earn a certain amount of money per year without paying any income tax. This allowance is known as a Personal Allowance and at the time of writing is set at £12,500 (2019 / 2020 tax year)
Whether you have one or two jobs doesn’t matter if the total earnings from both jobs combined are less than the personal allowance you’ll pay no income tax.
However, if the total of the two jobs takes you over the personal allowance then you’ll start paying income tax.
How To Ensure You’re Paying The Right Amount Of Tax
To ensure you’re paying the right amount of tax and are not hit with unexpected tax bills you’ll want to check your tax codes which can be found on the tax slip from your employer.
Details regarding the tax codes, which one(s) are applicable to you and your circumstances and additional information can be found on the GOV.UK website.
Tax Calculator – Is A Second Job Financially Viable
Before you agree or even apply for a second job you’ll probably want to use a calculator to work out whether it’s going to be cost-effective for your personal circumstances.
From here you’ll be able to input both basic and detailed information depending on the information you have available to you at the time to get a better look at your financial future with a second job.
In this case, we can see I have one annual income for £10,000 and a second annual income for £15,000. I haven’t added any details about pensions, student loans or tax codes.
As a result, we can see my annual total salary after tax is £21,571.
We can see which salary contributes what to the total amount and which contributes the largest amount of tax and national insurance.