Second Job Tax Calculator 2026/27
If you have two PAYE jobs simultaneously, your second employer almost always uses a flat-rate code because your Personal Allowance is already allocated to your first job. The most common codes are BR (all income at 20%) and D0 (all at 40%).
HMRC defaults to these codes to prevent underpayment. You can ask HMRC to split your Personal Allowance between both employers to reduce monthly deductions — contact HMRC or use your Personal Tax Account online.
Second Job Tax Calculator: How HMRC Taxes Multiple Incomes
Taking on a second job or side gig is increasingly common, but many people are surprised by how much tax they pay on their additional income. HMRC applies special tax codes to second jobs, and understanding how this works helps you avoid overpaying and plan your finances.
How tax codes work for second jobs
HMRC allocates your personal allowance to your main job, which typically has the tax code 1257L. Your second job usually gets a BR code, meaning all income is taxed at the basic rate of 20%. If your total income pushes you into the higher rate band, your second job may get a D0 code (40%) or D1 code (45%).
While a BR code on your second job sounds simple, it can cause problems. If your main job does not use your full personal allowance (because you earn less than £12,570), the BR code on your second job means you overpay tax. Similarly, if your combined income pushes you into the higher rate band but your second job still uses BR, you will underpay and face a tax bill later.
How to avoid tax surprises
Check your tax codes on both jobs using our Tax Code Checker. If your main job uses most of your personal allowance, the BR code on your second job is probably correct. If you earn close to band thresholds (£50,270 for higher rate), ask HMRC to split your personal allowance across both jobs. You can also opt to have all tax collected through your main job by asking HMRC to issue a cumulative tax code.
Self-employed side work requires you to register for Self Assessment and file a tax return. You can claim the £1,000 trading allowance or deduct actual business expenses. Read our allowable expenses guide to maximise your tax efficiency.
Which Tax Code Should a Second Job Have?
A second job is taxed under its own code. Which one applies depends on how much of your Personal Allowance the first job uses and on your total income.
| Code | What it means | When it is used |
|---|---|---|
| 1257L | Personal Allowance of £12,570, taxed at the normal 20%, 40% and 45% bands | Your main job |
| BR | All income taxed at the basic rate of 20%, with no allowance | A second job when your allowance is used by your main job |
| D0 | All income taxed at the higher rate of 40% | A second job when your total income puts it in the higher rate band |
| D1 | All income taxed at the additional rate of 45% | A second job when your total income is above £125,140 |
| 0T | No Personal Allowance, but the normal 20%, 40% and 45% bands apply from the first pound | Emergency or temporary code when HMRC has no information |
Second Job Tax Examples for 2026/27
These examples use England, Wales and Northern Ireland rates. The "correct tax" column is the tax due on the combined income of both jobs.
| Situation | Tax paid through PAYE | Correct tax | Result |
|---|---|---|---|
| Main job £30,000 (1257L), second job £10,000 (BR) | £3,486 + £2,000 = £5,486 | £5,486 | None. BR is correct because your main job already uses the whole allowance. NI is £1,394 on the main job and £0 on the second, which is below £12,570. |
| Main job £8,000 (1257L), second job £10,000 (BR) | £0 + £2,000 = £2,000 | £1,086 | Overpaid by £914. The main job leaves £4,570 of allowance unused. Ask HMRC to split it, for example 800L on the main job and 457L on the second. |
| Main job £45,000 (1257L), second job £15,000 (BR) | £6,486 + £3,000 = £9,486 | £11,432 | Underpaid by £1,946. BR is too low here because £9,730 of your income is taxed at 40%. HMRC may issue D0 instead, which collects £6,000 on the second job and is corrected afterwards. |
National Insurance is worked out separately on each job. Nothing is carried between them, so a £15,000 second job still pays 8% on the part above £12,570.
Why Is My Second Job Taxed at 20% (BR Code)?
Your Personal Allowance (£12,570 for 2026/27) can only be used against one job. HMRC assigns it to your main job, which gets tax code 1257L. This means Job 1 pays 0% tax on the first £12,570 of earnings.
Your second job has no allowance left to use, so every pound is taxed at the basic rate. HMRC gives it code BR — this means "Basic Rate on all income" (20%). This is correct and you are not being overcharged.
If your total income (Job 1 + Job 2) pushes you into the higher rate band (£50,271+), HMRC may change your second job code to D0 (40% on all income) to make sure enough tax is collected. Emergency tax codes like 0T mean no Personal Allowance is applied.
Can I Split My Tax Code Between Two Jobs?
Yes. If one job pays less than £12,570 and you want to reduce tax on your second job, you can ask HMRC to split your Personal Allowance. For example:
| Scenario | Job 1 Code | Job 2 Code | Result |
|---|---|---|---|
| Standard (full allowance on Job 1) | 1257L | BR | Job 2 pays 20% from first £ |
| Split allowance (Job 1 lower paid) | 757L | 500L | Job 2 gets £5k tax-free, rest at 20% |
| Total income over £50,270 | 1257L | D0 | Job 2 pays 40% on all income |
| Emergency code (new job, no P45) | 1257L | 0T or BR | 0T = no allowance; BR = 20% |
To request a split, contact HMRC on 0300 200 3300 or use your personal tax account. This can take 4-6 weeks to process. You'll need both PAYE references (on your payslips).
Student Loans With Two Jobs
If you have a student loan, repayments are deducted from both jobs if your income from each exceeds the plan threshold. This is a common source of confusion:
- Plan 2 (£29,385 threshold): If Job 1 pays £30k and Job 2 pays £15k, each job is assessed separately: Job 1 repays 9% of the £615 over the threshold (£55.35 a year) and Job 2 repays nothing, because £15k is below the threshold.
- Plan 5 (£25,000 threshold): Both jobs assessed separately. Job 1 £30k = £450/year. Job 2 £15k = £0 (under threshold).
- Postgraduate (£21,000 threshold): Deducted at 6% on income above £21,000 from each job separately.
Frequently Asked Questions
Will my employer know I have a second job?
Can I claim expenses on my second job?
Do I need to file a Self Assessment with two PAYE jobs?
Why did my tax code change to K?
Sources & Methodology
All calculations are verified against official HMRC thresholds and rates for the 2026/27 tax year. Figures are updated within 24 hours of any HMRC announcement. Calculations are for guidance only — consult a qualified accountant for personalised advice.