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Various information I read seems to contradict each other.
So hoping an expert in the STW house can clear things up.
If your primary job pays less than £43k a year. And you take a 2nd job, do you automatically pay 40% tax on the 2nd job?
if yes ...
If both jobs add up to less than £43k at end of financial year - can you claim back the tax you have paid on the 2nd job (if you have paid that at 40%).
Thanks.
Not a tax expert, but surely "no" and "yes" ??
No and Yes, although if you do earn more (only paying basic rate) you'll get a bill.
No and yes.
No, and Not applicable
Tax is culmative so you pay exactly what is owed - in your circumstances though I would imagine there may be some corrections to be made at year end.
NI is not though so you can earn around another £600 a month in a second job and not pay any more NI.
As someone with 3 sources of income I can confirm it's no. In my case one income is more than the 10'600 basic tax allowance so my tax code is all used up there. My other 2 jobs are tax code as BR - I pay basic rate tax on everything I earn.
My total is under 40k though. So if you know your total will be less than 43K you should be paying 20% on the second job.
Thanks all.
Just another question.
If the primary job is under the £43k limit - but the 2nd job takes you over, do you only pay the 40% on whatever you earn OVER £43K?
yes
If the primary job is under the £43k limit - but the 2nd job takes you over, do you only pay the 40% on whatever you earn OVER £43K?
Yes, this is a common shibooleth on earnings willy waving when people [s]brag[/s] bullshit that they now, or did, earn less because they are on the higher tax rate..
Thanks all.
Yes, this is a common shibooleth on earnings willy waving when people brag bullshit that they now, or did, earn less because they are on the higher tax rate..
What?
Sorry I am being a derbrain. A shibboleth is a code the checks if you are in or out of a group based on what you know. Those that know the code are in, those that do not are out.
So if you have ever paid the 40% rate you damn well know that its not through and through, its only on the earnings of over 43k (or whatever it is or was at the time).
Thus when a bullshitter says that they are now taking home less because they have moved up to 40% tax rate it means that they are talking shite. They have revealed that they do not know the code (in this case the tax code ho ho), and are thus not in the group of 40% tax payers despite claiming that they are.
Its a bit like selecting which infidels to execute based on whether or not they can recite certain verses from the koran..
Thus when a bullshitter says that they are now taking home less because they have moved up to 40% tax rate it means that they are talking shite.
Or they don't understand the difference between marginal tax rate and overall tax rate, which is surprisingly common.
Its a bit like selecting which infidels to execute based on whether or not they can recite certain verses from the koran.
Rob loves off the wall analogies 
Footflaps I agree entirely, hence the OP's question, thus if you've never moved from one rate to another you would be ignorant of it. But the point being that if you have had a payslip since moving from the lower to the higher tax rate you know that you are making more money than you were before. So stating that you are "now earning less because you are on the higher tax rate" proves that you are actually not on the higher tax rate, and likley have never been..
Rob- I looked at wiki and it turns out the origin of the phrase is pretty much from this -
"Recorded in the Book of Judges, chapter 12, after the inhabitants of Gilead inflicted a military defeat upon the tribe of Ephraim (around 1370–1070 BCE), the surviving Ephraimites tried to cross the Jordan River back into their home territory and the Gileadites secured the river's fords to stop them. In order to identify and kill these refugees, the Gileadites told each refugee to say the word shibboleth. The Ephraimite dialect did not contain the "sh" sound and so those who pronounced the word as sibboleth were identified as Ephraimites and killed"