# tax.....



## badly_dubbed (Dec 11, 2008)

ok so the mrs has a job industrial cleaning for a company called clearview....now clearview has just lost the contract for one of her jobs (she does 4hrs at a factory called CRC then cleans another factory elsewhere)

so clearview has lost the CRC contract and it has been taken over by a company called initial, she still works for clearview at the other factory but will now be working for initial at CRC, in effect working for 2 companys....

will she be taxed on her initial job at CRC as a second job therfore being taxed 40%!!!???

or will it remain the same as she had no control over it??


----------



## Gruffs (Dec 10, 2007)

She'll have a tax code at her first job that all her allowances are accounted for on (TF/10% etc).

The second job will be tax code BR for 'basic rate' so she gets no allowances on that job and pays 23% on all of the money earned on her second job.

As long as she is not earning over the 40% threshold per annum (£37400 iirc), she will not get taxed at 40%.


----------



## badly_dubbed (Dec 11, 2008)

so she will be taxed as having a second job?


----------



## mattsbmw (Jul 20, 2008)

It shouldnt make any difference, she will pay less tax on the first job, but more tax on the second job, but it should even out overall.


----------



## badly_dubbed (Dec 11, 2008)

well it will wont it?

she will be loosing 17 hours work at the lower tax rate and replacing those 17 hours at a higher tax rate as itll now be classed as a 2nd job wont it??


----------



## IanG (Nov 21, 2007)

Gruffs has explained it well but hopefully this might also help

Everyone has a personal allowance of £6475.00

If she say earns £10K at the first job she wont pay tax on the first £6475.00 then will pay tax at 20% on the remainder.

Now for the second job there will be no personal allowance as this has been accounted for at the first job so she will be taxed at the basic rate of 20% on all of her earnings at the second job.

She wont be taxed at 40% unless she earns over £37401 for the year


----------



## Bero (Mar 9, 2008)

there should be no net effect - it just looks bad on the 2nd pay slip.

It would be no different if my employer gave me a cheque after the 1st 20hrs a week and gave me a second cheque for the 2nd 20hours a week. The 1st cheque would be a higher value because it would use up 1/52nd of my annual allowance, the second cheque would have no allowance.

Assuming her rate of pay is the same: -

17hours a week with company A + 17hours a week with company B = 34 hours a week with company A (or B) = same take home pay.


----------



## mattsbmw (Jul 20, 2008)

Bero said:


> there should be no net effect - it just looks bad on the 2nd pay slip.
> 
> It would be no different if my employer gave me a cheque after the 1st 20hrs a week and gave me a second cheque for the 2nd 20hours a week. The 1st cheque would be a higher value because it would use up 1/52nd of my annual allowance, the second cheque would have no allowance.
> 
> ...


Thats what i was trying to say but you put it so much better o)


----------



## CliveP (Feb 1, 2009)

badly_dubbed said:


> well it will wont it?
> 
> she will be loosing 17 hours work at the lower tax rate and replacing those 17 hours at a higher tax rate as itll now be classed as a 2nd job wont it??


Hi, I know others have also answered so excuse reply at the risk of repeating, but you can have 100 jobs if you like - there's no 'second job' tax bracket, you are simply taxed on the total amount of your income (apart from some sorts of income, like dividends and capital gains income which is slightly different). However in essence you add up all your income and depending whether it passes certain thresholds then you pay tax at the appropriate rate. Another mis-perception when you pass the income thresholds is that you then pay tax on the whole lot at the higher rate, which isn't the case.

Regards,
Clive.


----------

