Second Job Tax Calculator 2026/27

Q: Why is my second job taxed at 20% (BR code)?

Your Personal Allowance (£12,570) is used up by your main job. With no allowance left, your second job is taxed at the basic rate (20%) from the first pound. This is correct — HMRC isn't overcharging you. The BR code means 'Basic Rate on all income'.

Q: Can I split my tax code between two jobs?

Yes. If one job pays under £12,570 and the other pushes you into a higher tax bracket, you can ask HMRC to split your Personal Allowance. For example, you could have a 757L code on Job 1 (using £7,570 of allowance) and a 500L code on Job 2 (using £5,000). This reduces tax on Job 2. Contact HMRC on 0300 200 3300 or use your personal tax account.

Calculate tax on two PAYE jobs. See why your second job uses a BR or D0 tax code, how much you take home from each, and whether splitting your Personal Allowance would save tax.

💼 Job 1 (Main)

Annual Salary

Tax Code

Your main job usually gets the full Personal Allowance (1257L).

Pension Contribution (%)

📝 Job 2 (Second)

Annual Salary

Tax Code

Most second jobs use BR. HMRC may use D0 if your total income is high.

Pension Contribution (%)

🎓 Student Loan (if applicable)

Student Loan Plan

Also Have Postgraduate Loan?

📊 Result

Total Take-Home Pay (Both Jobs)

£0

After tax, NI, student loans and pension

Your Tax Code Situation

Job 1 uses your full Personal Allowance. Job 2 is taxed at basic rate on all income.

💼 Job 1 Breakdown

📝 Job 2 Breakdown

📈 Combined Summary

⚖️ Should You Split Your Tax Code?

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Note: Based on 2026/27 tax rates. Student loan thresholds: Plan 1 £24,990, Plan 2 £27,295, Plan 4 £31,395, Plan 5 £25,000, Postgrad £21,000. Tax codes ending M (Marriage Allowance) or N are also possible — contact HMRC if yours differs.

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 (£27,295 threshold): If Job 1 pays £30k and Job 2 pays £15k, you pay 9% on ~£2,705 from Job 1 AND 9% on ~£15,000 from Job 2.
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.

Overpayment Risk: If your total income stays under the threshold but one job pushes over it, you may overpay. HMRC reconciles this at year-end via Self Assessment or P800 calculation. You can claim a refund if you've overpaid.

Frequently Asked Questions

Will my employer know I have a second job?

Your employer does not automatically know about your second job. However, HMRC does — your tax code for the second job (BR, D0, etc.) tells your second employer how much tax to deduct. If HMRC issues a tax code with "K" prefix or changes your main job code, your employer may ask questions. You are legally required to declare all income to HMRC.

Can I claim expenses on my second job?

Only if your second job is self-employed. If both jobs are PAYE, expenses are not claimable in the same way. However, you may be eligible for tax relief on specific costs (uniform, professional subscriptions, working from home allowance) if your employer doesn't reimburse them. Use HMRC's P87 form to claim.

Do I need to file a Self Assessment with two PAYE jobs?

Usually no — if both jobs are PAYE and your tax is correct, HMRC handles it through your tax codes. You only need Self Assessment if: (1) your combined income exceeds £150,000, (2) you owe more than £3,000 in tax that can't be collected through PAYE, (3) you have other untaxed income (rent, dividends, self-employment), or (4) you want to claim specific tax reliefs.

Why did my tax code change to K?

A K code means you owe more tax than your Personal Allowance covers. This happens when you have untaxed income (benefits, state pension) that exceeds your allowance. With two jobs, a K code is rare — but can occur if your main job's allowance is reduced to collect underpaid tax from a previous year. If you see a K code, call HMRC immediately to understand why.