What level of income tax on a second job

[poshgaffer]

Dear All,

I am about to take a 2nd job (40 hours per month) in order to increase my income, how with this effect my taxation?

Many thanks,

[Simon Sweetman]

The simple answer is that it will increase your annual income and that's what you pay tax on. It's hard to be more detailed without figures. It can be dealt with through your tax code and that will probably means a code which deducts basic rate tax from the incoem from the second job. That will get things right unless you push up into higher rates.

[maths]

For tax year 2005/06 personal allowance is £4,895.

Income tax at 40% starts at a level of taxable income of £30,310.

Thus if you add together the income from your two jobs and the total is less than £(4,895 + £30,310)
ie £35,205 then you will be paying income tax only at the 22% basic rate.

In other words taking a second job merely increases your total income tax liability but may mean you then pay 40% on some part of the second salary depending upon the figures as illustrated above.

[AA UK]

poshgaffer - in addition to maths comments, which are clear and accurate as always, you will want to consider deferring Class 1 NIC on the second job to avoid overpaying. Full details of how to do this can be found on HMRCs website.

[Little-a]

Can somebody explain this to a tax virgin? I have a primary job earning me £14k plus roughly £1.5k bonuses and I am looking to take evening and weekend work as a second job, just a few hours a week, say 15hrs @ near minimum wage (£5ish). What sort of tax would I then be paying out of second wage?