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.
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.
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.