3 jobs tax

HOW MUCH TAX DO YOU PAY IF YOU WORK A SECOND JOB?

Generally, the rates are the same as you would pay for principal employment. The basic rate (currently 20% on taxable income up to £50,270 in 2021/22 and 2022/23) also applies to a second employment, as do higher and extra thresholds.

So, the answer to the question, "Do I pay additional tax on a second job?" is no. However, it may raise your total liability rate.

You aggregate your earnings from both employment and pay taxes on the total. The Personal Tax Allowance 2021/22 — the yearly tax-free salary maximum for everyone – only applies to your highest-paying employment.

If both occupations are solid, you have the right to share your Personal Allowance. Most individuals, though, reserve it for their major source of income.

For example, you may earn £1,200 per month from your regular job and £600 as a supplement elsewhere.

The monthly Personal Tax Allowance (set at £1,047.50) for 2021/22 will be tax-free, but the remaining £152.50 will be taxed at 20% (or £30.50). Meanwhile, the whole £600 from your second employment is taxed at 20% (or £120), leaving you with a debt of £150.50.

A supplementary income, on the other hand, might push you into the higher or additional-rate earning bracket. Income Tax on a second employment would be 40% on earnings above £50,271, or 45 percent on incomes over £150,000.

While all of this may seem to be quite hard, GoSimpleTax may assist you in simplifying your Self Assessment tax return. Begin your free trial now and join the thousands of other customers who have saved time and worry by filing their tax returns.

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