Earning extra cash whilst on leave

Discussion in 'Finance, Property, Law' started by in-it-for-the-easy-life, Nov 5, 2007.

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  1. I was wondering if anyone new the details on having a second job whilst on leave? I have found a job that i could do whilst on several weeks of POTL. Do i require permission from my CO to work legitimately (tax paid etc....) for a civvy company. Not sure what the rules are....
    Any help appreciated.
     
  2. You require permission (from your OC at least). You cannot undertake security work (including doorman/bouncer). Nor any other work that conflicts or compromises service life.

    Tax and all that bollox is upto the employer to sort out.

    However, if you are injured whilst working for a civvy firm the Army can refuse to pay you until you recover and are fit for Service.
     
  3. Cheers Dinger,
    i've spoken to a few people at work today and they said that you can earn up to £100 if paid weekly and £400 if paid monthly before you are taxed on a second income. Can anyone confirm this for me.
    again any help is greatly appreciated.
     
  4. depends what you earn Gross in a year. Also take these claims with a pinch of salt, squaddies love oneupmanship.

    If you do it, juggling the Army and another job can be difficult, remember you can be pinged for duty at a moments notice, so your other employer always has to be flexible and the first time you whinge to the Army about getting pinged when you were going to earn extra cash, will be the time permission is withdrawn.
     
  5. I think you will find that the advice on second incomes is incorrect, all earnings above the annual personal allowance (£5225 for the 2007/8 tax year) will be taxed, give the tax office a call they can be helpful, they will be able to give you the details.

    Who ever gave you the advice may be referring to the annual personal allowance on a weekly basis which works out at £100.48 per week before tax is due; however this is a one off allowance and not for each form of employment.

    If you do not want to talk to the tax people the HM Revenue and Customs have details of allowances and rates of tax on their website at http://www.hmrc.gov.uk/rates/it.htm.

    Do a quick calculation to see whether it is worth taking a second job as you likely to be hit for at least 22% tax and if the second job takes you over about £35K you will be hit for 40%. I do not know what the situation with National Insurance is but you wil be paying that as well 10-11% I don't know the exact figures.

    If you don't declare the second income and the taxnazis find out they can be relentless in their pursuit of you and the money sending the baliffs round quite quickly so if the employer is not deducting tax put at least 40% aside to cover yourself when they catch up with you.

    Best of luck.
     
  6. IIRC, your new employer will put you on an emergency tax code (because, in effect, you can't provide him with the paperwork). That is 22% which is the middle rate of tax, plus a bit for NI. If you are a young Tom, there shouldn't be any further problem as you will be paying more tax than you should, and you won't be anywhere near the 40% tax level.

    If you want to reclaim the overpaid tax (because your effective tax rate is normally lower than 22%), then ask for and complete a tax return! :D

    The advice about the types of jobs to avoid and asking permission looked about right.

    Litotes
     
  7. I thought the higher rate of 40% tax was when you got nearer to 40K a year (can anyone confirm this). Once over that figure you then only get taxed 40% on that amount over and normal tax for the rest.
     
  8. Thats roughly right, but if you earn £50 a day and the tax man takes £25 in tax and NI you need to ask yourself is it worth it.
     
  9. Realise that mate, Im just working out the type of job I can go for when I add on my annual pension when I get out. Obviously any job over 30K would get me close to paying the 40% bracket if im getting 9K pension. :roll:
     
  10. Only the amount over the 40 K is taxed at the higher rate of 40%, all below that threshold is taxed at the standard 22.
     
  11. Iron,

    40% comes in to play at around the 39K -40k mark and yes you only pay 40 % on any earning over and above the threshold.

    so if you earn 50 k you only pay 40% on roughly 10k
     
  12. I believe the ceiling was raised to 45K before you get humped to death.

    On the subject of a second income during leave. Your a mug if you tell the MOD anything, they will have a knee jerk reaction and go super safe to avoid any come back and youll get shafted either way. Ask no questions tell no lies, try cash in hand, the chances are, if your being employed for just a couple of weeks you wont be going through their books.

    Hope this helps with your decision.

    If there are any SPS tossers around, or Johnny do good, then i didnt write this someone stole my ID, so **** off. :twisted:
     
  13. Iron,

    and anyone else who kneeds to know. If your civvie wage will put you in the 40% bracket make sure your pension is taxed at that rate. I went through ten years of grief on being repayed and then billed for the same amount of tax. In a nutshell, your civvie employer and tax office will act as if you only have one income so all your allowances will be applied there. If you can afford it put your army pension into another pension and claim the tax back at 40%. FFS take proper financial advice this s just a steer.
     
  14. Cheers for the advice lads.
     
  15. Hi guy's. If you earn more than £5270, then it work's out as follows.

    The 1st £2230 @ 10% tax.
    plus anything from £2230 to £32370 @ 22% tax.
    plus anything over £39870 @ 40% tax.

    these figures are for total income's and/or to include any taxable state incomes.
    In practice, you tax free amount is spread over the whole year,so you can earn £439 amonth, or £101 a week in total before you will need to pay tax.

    Hope this help's.

    Gordy..