2 jobs NI and tax question

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This topic has 4 replies, 3 voices, and was last updated 5 years ago by andyl.

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2 jobs NI and tax question
andyl
Free Member

Job 1: company director

Job 2: 1 month, lets say £5k PAYE

To keep it simple lets say the annual NI PT is £8k and the tax allowance is £12k

Am I correct in thinking the person still gets the full NI PT allowance of £8k on Job 1 so could earn £8k on that job without any NI? But they will pay NI on job 2 as they are over the monthly PT?

In terms of tax they will earn £13k so £1k over the allowance and will hence pay 20% on £1k = £200.

If they only received £7k from job 1 and £1k extra on the dividend then the company would still be liable for 20% corporation tax anyway and there may be additional dividend tax?

Posted 5 years ago

mikewsmith
Free Member

Does your company have an accountant 😉 It will probably all come out in the wash with your tax return as PAYE/company tend to not like complicated things like that!! Or are you doing your tax return at the moment?

Posted 5 years ago

drew27
Free Member

No NI on either job. I presume they are 2 seperate jobs and is not an arrangement to save NI.

Yes £200 tax but you would have to split your tax code for that to work in 1 particular month. It will come out in the wash.

Which seems strange to get one monthly payment of £5k via PAYE… doesn’t sound like an employment situation!

£2K dividend nrb(?) – so no tax on this personally. but no ct deduction for it. Divi must be paid out of profits though and as per shareholding. wage will have a ct deduction.

Posted 5 years ago

andyl
Free Member

Job 2 will be getting started end Feb/beginning March with job 1 taking a bit of a back seat but used for occasional consultancy in 2019-20 year. Job 2 with completely unrelated company so not a tax dodge, just taking on a perm role for a bit for something more reliable.

Dividend would be over the £2k allowance, just mentioned the difference between the 2 scenarios.

Posted 5 years ago

andyl
Free Member

bit more background…paying a basic monthly income so depending on the NI situation could either stop that now and save a few months if the PAYE is added together for NI calc or just keep paying if the NI situation doesnt change and it works out slightly better in terms of dividend tax (or maybe no difference on the latter)

Posted 5 years ago