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Where Taxpayers and Advisers Meet

Tax on second employment

DKV
Posts:3
Joined:Tue Jun 30, 2020 12:06 pm
Tax on second employment

Postby DKV » Tue Jun 30, 2020 12:16 pm

Hi all. This is my first post here. I wanted to understand how I need to pay tax on my second employment income.

I currently earn around 30k per annum on payee from my first employment which shows the tax paid and NI contributions on my payslip. I earn around 3k per annum from my second employment for which i get payslip each week and it does not show any tax deducted and money is paid in cash. I have requested P60 from my second employer and using my self employment login i have declared it in January and paid the due tax.

Is this correct? Please can someone confirm? Thanks in advance.

jerome.lane
Posts:237
Joined:Mon Aug 12, 2019 8:41 am
Location:Sandhurst, Berkshire
Contact:

Re: Tax on second employment

Postby jerome.lane » Sat Jul 04, 2020 7:09 am

If your second source is employment, it’s not self employment! The employer should be deducting basic rate tax if set up properly and you shouldn’t have to do a tax return.

If you’re self employed, you’ll pay income tax on profit and class 2 NIC. You’re below thresholds for class 4 NIC. You can claim actual expenses or a £1,000 trading allowance so you’ll only pay income tax on about £2,000 at most = £400.
Jerome Lane
Tax Adviser
Telephone: 07943 005902

DKV
Posts:3
Joined:Tue Jun 30, 2020 12:06 pm

Re: Tax on second employment

Postby DKV » Mon Jul 06, 2020 1:54 pm

Thanks Jerome.
If my second employer pays me cash and gives me a payslip with zero tax, how can I pay the tax? My employment history from HMRC for last year shows my second employer's name. I even got a P60 from the second employer.
I want to make sure that I do not get into unnecessary problems. Thanks in advance.

jerome.lane
Posts:237
Joined:Mon Aug 12, 2019 8:41 am
Location:Sandhurst, Berkshire
Contact:

Re: Tax on second employment

Postby jerome.lane » Mon Jul 06, 2020 2:12 pm

If you earned £30k from your first employment and paid the correct tax as well as earning £3k from your second employment and paying no tax, then HMRC should eventually write to you asking for £600 (20% of £,3000) in income tax. They will probably deduct £3,000 from your 2021/22 personal allowance to collect this. You should be put on a BR tax code in your second employment so that 20% tax is deducted. You can ring HMRC to sort this out (its hard work getting through to them at the moment though) or contact a tax advisor or accountant to help you. Information on the LITRG may help : https://www.litrg.org.uk/getting-help/how-do-i-get-help-hmrc-tax-and-tax-credits.
Jerome Lane
Tax Adviser
Telephone: 07943 005902

DKV
Posts:3
Joined:Tue Jun 30, 2020 12:06 pm

Re: Tax on second employment

Postby DKV » Mon Jul 06, 2020 2:25 pm

Thanks again Jerome.

My accountant has declared the second job's income using SA102 and yes you are right, I paid around 598 pounds tax for my second job. I will clear it up with HMRC again. Thank you so much again.

jerome.lane
Posts:237
Joined:Mon Aug 12, 2019 8:41 am
Location:Sandhurst, Berkshire
Contact:

Re: Tax on second employment

Postby jerome.lane » Mon Jul 06, 2020 2:28 pm

Thanks again Jerome.

My accountant has declared the second job's income using SA102 and yes you are right, I paid around 598 pounds tax for my second job. I will clear it up with HMRC again. Thank you so much again.
Good stuff - glad it is kind of sorted! Take care, Jerome
Jerome Lane
Tax Adviser
Telephone: 07943 005902


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