Managing your budgets can be hard work. Even when you’ve followed all the budgeting advice, made sure you’re on the cheapest tariffs, sometimes the ends just don’t meet. So, you think it’s time to look for a second job to help out for a bit. But what do you need to consider to make sure you can get that second role and manage it without crashing out of your current job and making things a whole lot worse?
Firstly, what are we talking about here? Do you have a mate that owns a pub and needs a few hours from you over the weekend while he’s looking for new staff or is this more of a long-term thing? The first thing you need to consider is what does your current and main source of income say about a second job? Most firms will probably have something written into your contract that limits your ability to take on a second job, and some might prohibit it all together. So, the first thing to do is check your contract. You might find that the restriction is about working in the same field or for one of the customers or suppliers, so you need to be sure you’re not falling foul of any restrictions. It may also require you to discuss this with your boss before taking on any other work. Make sure you do this – if you need extra cash the last thing you need is to lose your main source of income.
You need to consider what hours you will be working. The law states that workers are only allowed to work a certain number of hours each week (Working Time Regulations). If your second role pushes you over the 48 hour working week, you will need to make sure you have opted out of this requirement. Also, your main workplace will be monitoring you and making sure your current job performance isn’t slipping in light of you taking on hours out of the office.
Consider what income you will actually get out of it. Work out the tax you would pay on a second job with online calculators or by speaking to HMRC. Errors can occur where you are being paid by 2 separate companies, so make sure you’re clear what you should be earning. You also need to make sure that the extra hours you’re away from your family are going to be worth it. No point working an extra 10 hours a week if you’re not earning much after tax. Does the extra work push you over the tax threshold? You also need to consider how much you will be earning over the year in case this pushes you into the higher tax bracket.
Consider how this could affect any benefits you receive. Will the extra income push you over any thresholds for the benefits you receive? You need to weigh up the extra income from the second job and take a look at the whole picture of your household income.
Think about your pension. 2 workplaces mean 2 possible pension schemes. You need to consider the impact of 2 lots of pension contributions and whether you want to pay into both. If you have a few smaller pension pots from previous jobs, it may be worth looking to see if these can be amalgamated into your main pension to keep things easier when retirement finally comes round.
So, you’ve considered all the options and still need to take on that second role. What now? You need to find something that won’t require a full-time commitment but offers the flexibility to fit around your current working hours. Take your time and make sure the role you find will allow you that flexibility to fit around your normal workday but doesn’t put too much of a strain on you for work the next day. Maybe you have a business idea and this will be the route you choose to take to try and get it going on top of your normal work.
Whatever you decide, make sure you’re clear with all the requirements of your current job and any tax and national insurance due is paid.
How can The Wage Shop help?
By trusting The Wage Shop to take care of the financial side of things, you can focus on relaxing, knowing all your Income Tax and National Insurance obligations are being met. As an employee of The Wage Shop, you are also covered by our Insurance Policy. Why not call us to find out more?
Once you’ve landed that second role, don’t forget to contact The Wage Shop to see how we can help with keeping you compliant. Head over to the website for more details on how we can support you or Contact Us for more information on our great value, flexible service.