Sunday, November 15, 2009

What percentage tax does a 18 yr old person pay on a second job?

I have had a part-time job for 3yrs and have now started anther job full time which job will i pay the most tax? Is there any way I can avoid paying to much.

What percentage tax does a 18 yr old person pay on a second job?
If you will earn over £7185 in your part time job you will have to pay 22% tax on your new job. If you're earning less than this in your part time job phone your tax office and they'll split your tax free allowances between both jobs.
Reply:You don't pay tax on a job. You pay tax on your total income.
Reply:Most people in UK are on the normal Tax Code of 503L. This allows you £5035. per tax year that you do not pay tax on (Approx £97 per week). Everything else is taxed at set rates of 10% for a small element %26amp; 22% for the remainder.


If you have 2 jobs %26amp; neither pays as much as the £5035 per year then contact your Inland Revenue office %26amp; they may "split" your allowances between the 2 jobs. Therefore giving you a tax code of 252L to each employer. thereby ensuring that you pay tax on everything you legally have to %26amp; also do not miss out on any tax allowances that may be due to you.
Reply:What you owe at the end of the year (or how much they owe YOU) depends on a lot of different factors, but how much they take out of your check depends on what you put on your W-4. If you're single, you can claim zero dependents or one dependent on your W-4. If you claim zero, they'll take out more every pay period. If you claim one, they'll take out less. One thing to bear in mind though: If they don't withhold enough from your paychecks, you could end up owing the IRS and the State at the end of the year. Personally, I always claim zero -- yeah, they say it's like giving Uncle Sam an interest-free loan, but I'd rather that the Feds owe ME money at the end of the year instead of me owing THEM money at the end of the year.


No comments:

Post a Comment