Started doing 4 on 4 off recently. And I could do a 5th day for these but I think I would earn more doing a 5th day on agency does anyone else do this and does it work out well after second job tax etc?
What is this “second job tax”? Whatever you earn on that “extra” day will be taxed at 20% regardless of who you are working for (unless you earn enough to get into the 40% tax band or can do it “cash in hand” and pay no tax at all…)
Just be wary which employer puts their paye return through first, it can result in the revenue thinking the 1 day a week job is your main employment, and your main job is a secondary, meaning a w1 tax code being stuck on your main employment. Ring the tax office yourself, don’t wait on other people. This scenario happened to me and it took me 6 months to sort out
Cheers I wasn’t sure how it would work with the tax man.
People working in the tax office are morons, they have zero common sense so be careful and keep an eye on how your tax affairs change.
Last year I got a letter off them stating I was now on the higher rate of tax due to my earnings. I called them for an explanation, the clever lady took the time to tell me it was because I was working 4 full time jobs! Yes that’s four full time jobs, she didn’t seem to think it was odd that I was allegedly working a minimum of 32 hours a day, six days a week. How thick do you have to be to think that was normal?
This was despite me sending in my P45 after every job ended, someone had put them in my file but failed to act on them.
I could give you other examples of their stupidity but this should suffice.
Ring the Tax Office?? Had a problem with my tax code tried ringing them numerous times sat on hold for over half hr (at my cost) gave up in the end , knobs the lot of em
+1 Andy
took me 47 minutes to speak to a human, who then insisted that the extra £80 a month they were taking was correct. despite being told what my total annual pensions are he still insisted. It took 15 months to sort with a refund of £1150.
Not often I use bad language on the 'net but the HMRC really are incompetant a****holes.
Who ever you work for as a second job you will still have tax and NI taken out,so why pay NI twice,especially for only one day of extra work
You may as well do an extra shift or two for your full time Boss
Won’t the tax and NI be the same wherever you do your work. Both are a percentage of earnings aren’t they?
As i understand it you will pay the same dues wherever. whoever you work for…always assuming both are taking PAYE
del949:
Won’t the tax and NI be the same wherever you do your work. Both are a percentage of earnings aren’t they?
As i understand it you will pay the same dues wherever. whoever you work for…always assuming both are taking PAYE
The problem arises due to not having a p45 to hand to the secondary employer. I did a p46 with Essex fire and rescue to cover secondary employment. If you leave it the tax man takes w1 contributions
I had this for 5 months at my current employment. They treated it as my second job. The company kept saying it’ll be sorted next week but it took a phone call to the tax man to sort it.
To be fair it was sorted out instantly.
I do 4 on 4 off but I always offer my boss the option for me to work got him on that overtime day. Don’t matter if my regular truck is out, I’ll drive anything in the fleet they send me in.
Can’t be doing with the agency anymore. They all (zb) me over when I went and got myself a job so I shall repay it to them that way.
Your personnel PAYE tax code can only be used by the one employer IE its best used by the one your earning the most money with. 
If you did one day/week for an agency they can’t then “offset” your personnel income tax allowance for a 2nd time, therefore your paying tax “at source” and you’ll see your paying higher tax with them for the same 10hr shift as an example. 
Big Truck:
Your personnel PAYE tax code can only be used by the one employer IE its best used by the one your earning the most money with.
If you did one day/week for an agency they can’t then “offset” your personnel income tax allowance for a 2nd time, therefore your paying tax “at source” and you’ll see your paying higher tax with them for the same 10hr shift as an example.
Makes no difference (tax-wise) whether you do an extra 10 hr shift for an agency/2nd employer or for your “main” employer - the taxman will still take 2 hours’ pay as Income Tax and about another hour’s worth as National Insurance contributions. Unless your income is over about £50k…
It does make a difference roymondo. If you do an extra shift for your main employer, you will pay tax pro rata of your tax code, incorporating your personal allowance, ie 4373L. If you do a shift for another employer, you will pay a flat w1 rate, in the region of about 10-15% extra
OVLOV JAY:
It does make a difference roymondo. If you do an extra shift for your main employer, you will pay tax pro rata of your tax code, incorporating your personal allowance, ie 4373L. If you do a shift for another employer, you will pay a flat w1 rate, in the region of about 10-15% extra
You appear to have misunderstood how the Income Tax system works (or you don’t know what “pro rata” means). Your personal allowance is a set figure (unless your circumstances or the laws change), there is nothing pro rata about it - it is the set amount of income you are allowed tax free, with anything above it being taxed at (for the vast majority of lorry drivers) 20%. For most people the starting figure for their tax code is 1060L (meaning their personal allowance is £10,600pa - or about £200 a week). If you have a tax code of 4373L then I’d like the number of your accountant, as that means you have a personal allowance of £43,730 before you start paying tax…).
The W1 (or, for monthly paid, M1) modifier is added at the end of the code (e.g. 1060L W1) - it doesn’t affect the rate of tax paid (still 20%) although in the circumstances given (working a single shift a week for the 2nd employer) it could result in you paying too little tax rather than too much, as the 2nd employer will allow you to earn the first £200 tax-free (the pay for the whole shift is likely to be less than that figure, so no tax deducted). The danger here is of course if it goes on for a long time, you end up owing the taxman a fair sum.
W1 (and M1) codes are only supposed to be applied if you have told the 2nd employer that this is now your only job - if you tell him that you already have another job (or pension income), he should apply the BR tax code from the outset (meaning that tax is payable on the whole lot - still at 20%).
I understand fully. The pro rata comes in, as your employer divides your allowance by the volume of payments they make across the year. Otherwise nobody would pay tax from April until they hit their personal allowance
But the W1 modifier doesn’t make any difference to the rate of tax you pay - it’s still 20%.
Example: (to keep the figures simple) Driver works 40 hours a week and is paid £10 an hour. His tax code is 1066L (typical for a driver who is entitled to the £60 a year uniform cleaning allowance) and this is his only income.
In a normal week his gross pay will be £400. The first £205 is tax free, so his employer works out his PAYE as 20% of £195 = £39. NI is 12% of (£400-£155, the Primary Threshold) = 12% of £245 = £29. So his net pay for a normal week is £400-£39-£29 = £332
If he works an extra 10 hr shift for his main employer, he earns another £100 gross, and pays tax at 20% and NI at 12% on the whole £100 - so he gets £68 in his hand. Note that it matters not a jot whether his tax code is 477L, 1060L, 1066L or 2000L (if that’s even possible!) - that extra £100 is still taxed at 20% and NI is levied at 12%.
If he works those 10 hours for a 2nd employer, who has (incorrectly) applied the emergency code 1060L W1 the employer will not deduct any tax at all, since he will look only at the current week’s earnings (a paltry £100) and see that it doesn’t come anywhere near the basic personal allowance of £203pw. As he doesn’t know about Driver’s main employment (if he did, he wouldn’t be applying the 1060L W1 code, he would be using the BR code) he won’t deduct any NI either as the earnings are below the Lower Earnings Limit of £111. Of course, in the fullness of time the taxman will see what has happened and Driver will find his code adjusted to recoup the underpayment.
If the 2nd employer applied the correct Emergency code of BR, he would simply deduct tax from the £100 at 20% - although in this case there would still be no deduction for NI as second jobs are treated as separate employments so the LEL of £111pw still applies - so far from paying tax at a rate 10-15% higher, he will actually pay less tax in total (Income Tax + NI) by working for the 2nd employer.
Having worked through that lot, I can see that I was wrong in my initial assertion that it would make no difference tax-wise - It makes no difference as far as Income Tax is concerned, but there is the potential for a few pounds in NI to be gained by doing the extra shift for someone other than your main employer.