Tax Rebates & Refunds

Tax tips for people with more than one job

October 2, 2012
Posted in Income Tax — Written by Chris

The UK tax system can be tricky to work out when your employment and financial circumstances are simple and straightforward. When you have another job or a more complicated employment situation, however, working out how much tax you should be paying can be downright baffling.

Here is some advice and tips on tax for people who have more than one job.

• If you have more than one job, your tax will be deducted via the Pay as You Earn (PAYE) system, which is the same system used when you only have one job

• The PAYE system will treat one job as your main job, and this is the one for which you will get your annual personal allowance (this is the amount you can earn before you have pay tax). Tax on your second job will be taken at the basic rate.

• Check your tax codes on all jobs to ensure they are correct. If they aren’t, you could be owed a tax refund

• You must always tell HMRC if you get a second job. Failing to do so could result in your personal allowance being applied to both jobs.

• If your income from both jobs doesn’t exceed your personal allowance for the year, you could end up paying too much tax. Always check this, as you may be due a tax rebate.

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