Demand for workers in retail and hospitality is high, and the peak for those industries is just around the corner. Many may want to boost their income with a second job, which leads to the question: what will the tax implications be?
The Income Tax Division receives lots of queries about income tax and national insurance on temporary, casual and second jobs.
The rate of income tax deducted from someone’s second job is usually dependent on how much income they have from other sources.
For many people, their income before taking on the additional employment will incorporate all of the personal allowance and 10% tax band, meaning the income tax on the second job will automatically be deducted at 22%.
Tax implications
However, where this isn’t the case, any unused personal allowance or 10% tax band can be utilised in their second job.
Anyone who takes up a second job should contact the Income Tax Division as soon as possible to have their tax code recalculated based on their individual circumstances.
Students who are thinking of working over TT or the summer, with a total income in the tax year that is likely to be less than the single person’s allowance, should contact the Income Tax Division.
Those who meet the required criteria can be paid without any deduction of income tax.
Anyone who is unsure about the tax implications for temporary, casual or secondary employment can find out more at www.gov.im/taxandemployment.
Anyone taking up a second job should contact the Income Tax Division as soon as possible: www.gov.im/contactincometax.
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