Firm closing

[Happier diner]

55 minutes ago, A fool and his money..... said:

It's not though. In most cases a second job will be taxed at a higher rate than the first.

The only complication comes when people like you and the government say it's not true. Technically you're correct, but it's very misleading and disengenuos.

To all intents and purposes, in a vast majority of cases a second job will be taxed higher than the first, in comparison to only having the first job. It really isn't very difficult.

If your second job is your biggest earning job you can switch it around and pay the 20% on the original job

Jesus - Its not rocket science!

[TheTeapot]

6 minutes ago, Happier diner said:

I don't disagree. I get what you are saying. But how can it be done any differently. They don't have crystal balls. If it PAYE how would your second employee be able to know how much to pay you? Genuine question

I don't really know what they could do. Maybe they could write a better advice guide. 

I made it work to my advantage once I got my head around it, I've basically been in credit with the tax people my whole life, always get a rebate. It can really work for people, if you can afford to miss that £40 a week or whatever in tax from your second job then its like a savings scheme when the rebate comes. Same sort of thing self employed too, subcontract for someone and they'll take 20% from zero, but do 3 months and that's likely going to cover your tax for the year, I used to try and get that done early, that way you feel pretty comfortable using your exempt card, useful in the run up to christmas, don't pay tax for a month, extra cash in your pocket knowing you're covered.

The thing is, it's not easy 'losing' that 20% when you're young and skint, the kind of people who you might expect to find behind the bar or waiting on. You know the hours you've done, how late you've worked, how tired you are, you get paid and a fifth of it is gone, you feel less rewarded than you would hope to. 

Even though I made it work well, it is still undoubtably taking a big chunk of money out of the hands of people who might need it the most. It always just feels punitive. 

[Happier diner]

8 minutes ago, TheTeapot said:

I don't really know what they could do. Maybe they could write a better advice guide. 

I made it work to my advantage once I got my head around it, I've basically been in credit with the tax people my whole life, always get a rebate. It can really work for people, if you can afford to miss that £40 a week or whatever in tax from your second job then its like a savings scheme when the rebate comes. Same sort of thing self employed too, subcontract for someone and they'll take 20% from zero, but do 3 months and that's likely going to cover your tax for the year, I used to try and get that done early, that way you feel pretty comfortable using your exempt card, useful in the run up to christmas, don't pay tax for a month, extra cash in your pocket knowing you're covered.

The thing is, it's not easy 'losing' that 20% when you're young and skint, the kind of people who you might expect to find behind the bar or waiting on. You know the hours you've done, how late you've worked, how tired you are, you get paid and a fifth of it is gone, you feel less rewarded than you would hope to. 

Even though I made it work well, it is still undoubtably taking a big chunk of money out of the hands of people who might need it the most. It always just feels punitive. 

Self employed is different as you pay all your tax in the next FY

So basically you are criticising it but have no suggestions as to how the tax office and employers can see into the future.

I admit its a dilemma but its been that way for donkeys years and same all over the world pretty much. Wherever there is PAYE its difficult to spread a tax code between two jobs. I think you can move your allowance to a different job but only from the start of the FY. But I am guessing that bit

You have to remember you are not worse off, they just get to keep your money for a bit

 

 

[jackwhite]

2 hours ago, Roger Mexico said:

Yes but if you start in a secondary job, you'll be charged the full percentage of tax (at 20%) and NI on the whole amount.  There won't be any allowances or use of the 10% rate.  Of course if your primary job earning don't use up your full allowances (which is quite likely or why would you be getting a second job) , then you'll get a refund when you do your tax return.  But that could be well over a year after you were paid and again  if you're going for a second job it's probably because you need the money now.

Pretty much what I meant, albeit put much more succinctly by yourself.

There are a myriad of things that could be done to help. What is currently? Nothing that I'm aware of.

I'm sure someone will try and use the Love IOM card now as a bargaining chip.

[TheTeapot]

3 minutes ago, Happier diner said:

Self employed is different as you pay all your tax in the next FY

No you don't, they make you pay it in advance at 105%.

[wrighty]

5 minutes ago, TheTeapot said:

No you don't, they make you pay it in advance at 105%.

Many docs starting out in private practice fall foul of that.  I know of one had to sell his car to pay the ‘on account’ payment for year 2. 
 

World’s smallest violin playing for him, I know 🙂

[Happier diner]

28 minutes ago, TheTeapot said:

No you don't, they make you pay it in advance at 105%.

How do they know what your earning is before you earn it? 105% of what?

[TheTeapot]

4 minutes ago, Happier diner said:

How do they know what your earning is before you earn it? 105% of what?

https://www.gov.im/categories/tax-vat-and-your-money/income-tax-and-national-insurance/individuals/residents/payment-on-account/

[Happier diner]

Just now, TheTeapot said:

https://www.gov.im/categories/tax-vat-and-your-money/income-tax-and-national-insurance/individuals/residents/payment-on-account/

I have never had a POA notice. I have paid NI voluntarily in advance based on previous years. Maybe that's for self employed that they don't trust. 

[TheTeapot]

Like doctors?

[Gladys]

1 hour ago, Happier diner said:

I don't disagree. I get what you are saying. But how can it be done any differently. They don't have crystal balls. If it PAYE how would your second employee be able to know how much to pay you? Genuine question

The issue is it isn’t PAYE it is ITIP,  which is an instalment plan rather than a settling of your liability as you go along.  Overall, you won't pay more tax but have to wait for a refund,  so I understand the issue.  However, surely a call to the tax office will sort it? 

[kevster]

3 minutes ago, Gladys said:

The issue is it isn’t PAYE it is ITIP,  which is an instalment plan rather than a settling of your liability as you go along.  Overall, you won't pay more tax but have to wait for a refund,  so I understand the issue.  However, surely a call to the tax office will sort it? 

surely ITIP is the same  as PAYE - Pay As You Earn. So each weekly/monthly payment should add up to what you owe at the year end

[WTF]

45 minutes ago, wrighty said:

Many docs starting out in private practice fall foul of that.  I know of one had to sell his car to pay the ‘on account’ payment for year 2. 
 

World’s smallest violin playing for him, I know 🙂

there's no violin.

[Happier diner]

18 minutes ago, TheTeapot said:

Like doctors?

Maybe.

[Happier diner]

8 minutes ago, kevster said:

surely ITIP is the same  as PAYE - Pay As You Earn. So each weekly/monthly payment should add up to what you owe at the year end

Yes it is the same thing.