Taking on a second job is a great way to earn extra money and many people now find this necessary to make ends meet. It also improves your skill set and looks impressive on a CV, providing better job prospects in the future.
But working two jobs comes with many considerations for both employee and employer. In this blog, we’ll look at the benefits and pitfalls of working two jobs including legal restrictions and tax guidance for both parties.
Am I Allowed To Work Two Jobs?
Before you start looking for a second job, it is absolutely imperative that you revisit the contract you signed when you started working for your current employer. Employers will sometimes include restriction clauses in your contract of employment to prevent you:
- Working for a competitor or rival.
- Working a job that could bring your employer into disrepute.
- Being in breach of the working time regulations (see below).
Even if there are no restrictions within your contract, it’s good practice to let your employer know that you are considering taking on a second job – this helps ensure your first job is protected and means no surprises for either party.
Benefits and Potential Pitfalls Of Working Two Jobs
Aside from the benefit of greater earnings, there are several other benefits and also pitfalls that come with taking a second job from both the employer and employees perspective:
- A second job in a different sector can increase an employee’s skill set. For example, an administrative assistant may improve her communication and people skills by working part-time at a restaurant. This not only benefits the employer but can improve employee self-confidence and future prospects.
- Having a second job gives employees greater financial and job security should their main job ever be in jeopardy.
- Working a second job allows employees to meet more people, this will not only aid their personal development but also gives them the chance to refer your business to colleagues and customers where appropriate.
- Employees working two jobs may experience tiredness and fatigue resulting in underperformance.
- Some future employees may be put off by the fact that an employee has previously taken on second jobs.
- In some cases, an employee may move on to a full time career in their second job.
Second Jobs – Guidance For Employees
Know your rights – All employees will have certain rights when starting their second job such as protection against unfair dismissal and entitlements to holiday and sick pay. You can find out more about employment status and rights here.
Ensure you’re paid properly – It’s important to check that you are being paid the correct amount for both jobs. Read our blog post to find out the current rates of NWM and NLW wage
Tax considerations – Once you’ve started receiving income from an additional job, HMRC will update your tax code to reflect your new earnings. It’s important that you notify HMRC of any changes to your taxable income to avoid underpayment of tax.
Second pension – Taking on a second job may give you the opportunity to pay into a second workplace pension scheme, remember to keep track of this pension – you may wish to amalgamate it with your main pension when you leave.
Second Jobs – Guidance For Employers
National Insurance Contributions (NICs) – If your employee has more than one job, it is the responsibility of both employers to calculate NICs based on the earnings of both of their jobs.
Working Time Regulations – This is a consideration for both the employee and employer. Under the working time regulations or working time directive, employees cannot work more than 48 hours a week. You will need to ensure you have opted out of the 48-hour limit should your working hours breach this figure.
*Note that if your employee is under 18, they can’t work more than 8 hours a day or 40 hours a week – they are unable to opt out of this. This can cause implications for apprentices who are often under 18 and paid less than the National Minimum Wage.
Need A Hand?
At First Call, we provide a range of services to make employer and employees’ lives easier, from managed payroll services all the way through to fully managed accounting with additional information and advice tailored to help your businesses save time and money. Give one of our friendly experts a call today on 0117 3790810.
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