This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

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: 227
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: 227
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: 227
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


Return to “Income Tax”

cron